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This article addresses the question of Iraq's emergence as a state in the context of the First World War with a special focus on the interplay between British imperialism and Shiʿi activism. By the twentieth century, the majority of people who lived in the territory that would become the Iraqi state were Shiʿi Muslims. Largely ignoring the activism of Iraqis, there is a line of thinking in English-language scholarship which suggests that the process of state formation in Iraq was completely driven by British imperialists. Indeed, Britain established a military presence in the Ottoman vilayets of Basra, Baghdad, and Mosul during and after the First World War, and the empire was awarded an internationally sanctioned mandate for this territory in 1920. In an effort to decolonize the history of Iraq, this paper argues that the inhabitants of Iraq, especially Shiʿi activists, played a significant role in the formation of the new state. Research for this paper is based on the writings of Shiʿi activists with a special focus on clerical leaders, as well as British government officials. Challenging historical accounts that reflect British imperialist narratives, this paper argues that Shiʿi activists (and British responses to them) significantly influenced the course of state formation in Iraq. This is not to say that Britain was not influential in the creation of Iraq; in fact, British imperialists clearly had the upper hand. However, they did not operate in a vacuum, unaffected by the inhabitants of the Iraqi state that they wished to create. Instead of assuming that British imperialists single-handedly created Iraq or that ethno-sectarian divisions are the natural order in Iraq, this paper suggests that the relationship between Britain and Shiʿism played a critical role in the formation of the Iraqi state. Although many scholars consider Islamic sectarianism and Britain's colonial legacy in Iraq to be at the heart of the country's socio-political system, the relationship between Britain and Shiʿism in Iraq has not received ample scholarly attention. The intersection of British imperialism and Shiʿi activism resulted in several foundational threads that were woven into the fabric of the Iraqi state. The 1920 Shiʿi revolt against the British mandate for Iraq and the British counter-revolt became the outward manifestation of the British-Shiʿi divide. British officials installed a Sunni-run government in Iraq for fear of Shiʿi dominance, which could have resulted from democratic institutions. Anti-British resistance led by Shiʿi clerics completely changed the calculus of Iraq's emergence as an independent state and alienated much of the Shiʿi community from Iraq's political establishment. This process radically altered the roles that Shiʿi and British leaders hoped to play in post-Ottoman Iraq. This state of affairs was not inevitable given that the continuation of British-Shiʿi alliances that began to emerge during the First World War would have produced a profoundly different state. [ABSTRACT FROM AUTHOR]