While many scholars assert the importance of the narrative mode in historical inquiry, none have demonstrated how it is used specifically to analyze historical events and social action in processual, action-oriented ways. In this essay, we examine recent research on capital-state relations and urban development to demonstrate how political sociologists and urban sociologists are using narrative mode to examine the interconnectedness of human agency and social structure and the temporality of historical events in processual ways. We find that this newest research is utilizing narrative to generate new meanings of causality and to redefine the role of theory and explanation. We conclude by considering the implications of these developments for the future of sociology.