Over the course of the 20th century, Domitian's military, administrative and economic policies were re-evaluated. Hostile views of Domitian had been propagated until archeological and numismatic advances brought renewed attention to his reign, and necessitated a revision of the literary tradition established by Tacitus and Pliny. It would be nearly a hundred years after Stéphane Gsell's 1894 Essai sur le règne de l'empereur Domitien however, before any new, book-length studies were published.

In 1930, Ronald Syme argued for a complete reassessment of Domitian's financial policy, which had been largely viewed as a disaster. His economic program, which was rigorously efficient, maintained the Roman currency at a standard it would never again achieve.

Decades of civil war during the 1st century BC had contributed greatly to the demise of the old aristocracy of Rome, which a new Italian nobility gradually replaced in prominence during the early part of the 1st century. One such family, the Flavians, or gens Flavia, rose from relative obscurity to prominence in just four generations, acquiring wealth and status under the emperors of the Julio-Claudian dynasty. Domitian's great-grandfather, Titus Flavius Petro, had served as a centurion under Pompey during Caesar's civil war. His military career ended in disgrace when he fled the battlefield at the Battle of Pharsalus in 48 BC.

Despite his vilification by contemporary historians, Domitian's administration provided the foundation for the Principate of the peaceful 2nd century. His successors Nerva and Trajan were less restrictive, but in reality their policies differed little from his. Much more than a "gloomy coda to the...1st century", the Roman Empire prospered between 81 and 96, in a reign that Theodor Mommsen described as a somber but intelligent despotism.

The first of these was Jones' 1992 The Emperor Domitian. He concludes that Domitian was a ruthless but efficient autocrat. For the majority of his reign, there was no widespread dissatisfaction with his policies. His harshness was limited to a highly vocal minority, who exaggerated his despotism in favor of the Nervan-Antonian dynasty that followed. His foreign policy was realistic, rejecting expansionist warfare and negotiating peace at a time when Roman military tradition dictated aggressive conquest. Persecution of religious minorities, such as Jews and Christians, was non-existent.

Other influential 2nd century authors include Juvenal and Pliny the Younger, the latter of whom was a friend of Tacitus and in 100 delivered his famous Panegyricus Traiani before Trajan and the Roman Senate, exalting the new era of restored freedom while condemning Domitian as a tyrant. Juvenal savagely satirized the Domitianic court in his Satires, depicting the Emperor and his entourage as corrupt, violent and unjust. As a consequence, the anti-Domitianic tradition was already well established by the end of the 2nd century, and by the 3rd century, even expanded upon by early Church historians, who identified Domitian as an early persecutor of Christians, such as in the Acts of John.

Tacitus' major historical works, including The Histories and Agricola's biography, were all written and published under Domitian's successors Nerva (96–98) and Trajan (98–117). Unfortunately, the part of Tacitus' Histories dealing with the reign of the Flavian dynasty is almost entirely lost. His views on Domitian survive through brief comments in its first five books, and the short but highly negative characterization in Agricola in which he severely criticizes Domitian's military endeavours. Nevertheless, Tacitus admits his debt to the Flavians with regard to his own public career.

Dio included Domitia Longina among the conspirators, but in light of her attested devotion to Domitian—even years after her husband had died—her involvement in the plot seems highly unlikely. The precise involvement of the Praetorian Guard is unclear. One of the guard's commanders, Titus Petronius Secundus, was almost certainly aware of the plot. The other, Titus Flavius Norbanus, the former governor of Raetia, was a member of Domitian's family.