The aim of this paper is to clarify the distinctive and the shared features of the three phenomena: irony, understatement, and litotes. These rhetorical figures have been defined as synonymous, distinct or overlapping in various accounts. This indicates an interrelation but also a need for clearer definitions. Here, each of these rhetorical figures is defined via two jointly necessary conditions. This approach sharpens the categories, enables clear-cut distinctions and helps to explain cases of overlap. German corpus data and examples from the literature as a basis, allow differentiating between cases of understatement as a means of irony, and cases of litotes as a means of understatement. Beyond that, litotes and understatement allow for non-ironic uses. Interestingly, litotic irony is built on litotic understatement. This is due to the overt contrast necessary for both understatement and irony.