A large body of scholarship shows that autocrats can use corruption strategically to strengthen their political hold, such as by distributing rents to their supporters. However, this scholarship often overlooks how corruption may also politically damage autocrats. I argue that corruption often brings substantial political costs alongside its advantages, resulting in a ‘corruption dilemma’ for autocrats. I show that in recent years, public anger over corruption has led to numerous anti-government protests and has been a major cause of autocrats being ousted from power. How politically costly corruption is depends on factors such as the public's tolerance for corruption, whether the autocrat is accountable to quasi-democratic institutions and whether the autocrat can credibly claim to be fighting corruption. The case of Malaysia illustrates how relying on corrupt practices to stay in power can backfire even in a long-standing authoritarian regime. My analysis advances our understanding of corruption's mixed role in authoritarian durability and authoritarian strategies of rule.