Since 2010, the organization called the Islamic State has emerged as the most dangerous terrorist outfit in the Middle East. This article examines the factors that have interacted to shape the organization since its emergence in 2003. It also discusses the internal factors that have contributed to the organization's success in the region. It argues that factors such as the spread of Salafi and jihadi thought among the Sunnis in the Muslim world, big power intervention in the area, and the so-called Islamic awakening have been the most prominent reasons behind the rise of Islamic State. It also contends that the organization owes its success to the popularity of its message among the Sunnis, its military prowess, good governance, and efficient utilization of its financial resources.