The indicative—subjunctive distinction of the Latin verbal mood system has been subject to various analyses. The paper presents an approach relying on the concept of contrastive feature hierarchy, developing the idea of a featural decomposition of Latin verbal moods. A threefold distinction in terms of features [±realis], [±oblique] and [±irrealis] is proposed, with an elucidation of morphological and semantic counterparts of such features and combinations thereof, utilizing basic tools of the possible worlds framework. Consequences of the proposed approach for an analysis of synchronic and diachronic variation in the Latin verbal mood system are also briefly discussed.