This paper critically examines the theory of “charisma as lifestyle” (Charisma als Lebensform), expounded by Winfried Gebhardt, a contemporary German sociologist. Initially, I will summarize the concept of “charisma as lifestyle.” It expresses the “pure” charismatic lifestyle maintained through a “specific institution” which is resistant to institution building as a consequence of the routinization of charisma. Secondly, I emphasize that, in comparison with the existing literature, Gebhardt's theory is unique. Its uniqueness lies in his belief that social orders can “coexist” with charisma, and that the institutions can derive their “legitimacy” through “reflection” forced from the “outside.” Thirdly, I will discuss the kind of cases to which the theory of “charisma as lifestyle” can be applied. I will then argue that we can apply this theory to an explanation of the process of legitimating institutions in a modern “individualized-pluralized” society. Gebhardt develops a new way of thinking on charisma by turning attention to the implications and aspects of this concept that have been neglected in earlier studies.