This paper explores how factionalization within political parties affects policy-making. We develop a formal model where incumbent parties are internally divided, and their decisions to implement reforms reveal information about factional strength. Since voters value party unity, we show that more unified parties have incentives to develop reforms that are not needed. Surprisingly, we show that factionalization can be good for the voters because in equilibrium a factionalized party is more likely to choose the correct policy, despite being less effective. These findings offer novel insights into the strategic implications of factional dynamics and their impact on governance efficiency.