As soon as the United States annexed the Hawaiian Islands and established the Territory of Hawaii, native Hawaiians became worried that both the Hawai‘i Democratic Party and Hawai‘i Republican Party were incapable of truly understanding and fully accepting of the Hawaiian sovereignty movement. In 1900, native Hawaiians and their supporters created the Home Rule Party under the maxims "Hawai‘i for Hawaiians" and "Hawaiians for Hawaiians." Several members of the House of Kalākaua and House of Kawananakoa became involved in the party. In the first election, the Home Rule Party succeeded in becoming the majority party in the Territorial House of Representatives and Territorial Senate. They even sent Robert William Wilcox to represent the territory in the United States Congress.

As a newly elected delegate from Hawaii, Wilcox proved to be key in the overall agenda of the Home Rule Party. He became the direct link between the Congress that supported the overthrow of the Hawaiian monarchy and the members of the Hawaiian sovereignty movement. On the floor of the United States House of Representatives, Wilcox challenged his colleagues for the rights of the native Hawaiian people whom he feared Congress would neglect. His impassioned pleas and vigor in debate earned him headlines throughout mainland United States newspapers. Though successful in securing some rights, Wilcox failed to advance his agenda for native Hawaiian self-determination.

The Home Rule Party proved to be an ineffective arm of the Hawaiian sovereignty movement in the Territorial Legislature. During the period that they controlled both chambers of the legislature, chaos ensued. They refused to speak English and debated vehemently in the Hawaiian language. They attempted to pass bills granting blanket amnesties to native Hawaiian prisoners, tried to grant physician licenses to kahuna and tried to lower the US$3 tax on female dogs — a delicacy for some. Eventually, members of the royal family left the Home Rule Party to become Republicans. The Home Rule Party was disbanded after the elections of 1912.