The division
Seeds of division
Ali did not initially pledge allegiance to Abu Bakr. A few months later, and according to both Sunni and Shi'a belief, Ali changed his mind and accepted Abu Bakr, in order to safeguard the cohesion of the new Islamic State.
The Second Caliph, Umar ibn al-Khattab, was appointed by Abu Bakr on his death, followed by the third Caliph, Uthman ibn 'Affan, who was chosen from six candidates nominated by Umar.
Ali was eventually chosen as the fourth Caliph following the murder of Uthman. He moved the capital of the Islamic state from Medina to Kufa in Iraq. However, his Caliphate was opposed by Aisha, the favoured wife of the Prophet and daughter of Abu Bakr, who accused Ali of being lax in bringing Uthman's killers to justice. In 656 CE this dispute led to the Battle of the Camel in Basra in Southern Iraq, where Aisha was defeated. Aisha later apologised to Ali but the clash had already created a divide in the community.
Widening of the divide
Islam's dominion had already spread to Syria by the time of Ali's caliphate. The governor of Damascus, Mu'awiya, angry with Ali for not bringing the killers of his kinsman Uthman to justice, challenged Ali for the caliphate. The famous Battle of Siffin in 657 demonstrates the religious fervour of the time when Mu'awiya's soldiers flagged the ends of their spears with verses from the Qur'an.
Ali and his supporters felt morally unable to fight their Muslim brothers and the Battle of Siffin proved indecisive. Ali and Mu'awiya agreed to settle the dispute with outside arbitrators. However this solution of human arbitration was unacceptable to a group of Ali's followers who used the slogan "Rule belongs only to Allah", justified by the Qur'anic verse:
The decision is for Allah only. He telleth the truth and He is the Best of DecidersQur'an
This group, known as the Kharijites, formed their own sect that opposed all contenders for the caliphate. In 661 the Kharijites killed Ali while he was praying in the mosque of Kufa, Iraq. In the years that followed, the Kharijites were defeated in a series of uprisings. Around 500,000 descendents of the Kharijites survive to this day in North Africa, Oman and Zanzibar as a sub-sect of Islam known as the Ibadiyah.
Shortly after the death of Ali, Mu'awiya, assumed the Caliphate of the Islamic state, moving the capital from Kufa to Damascus. Unlike his predecessors who maintained a high level of egalitarianism in the Islamic state, Mu'awiya's Caliphate was monarchical. This set the tone for the fledgling Ummayad dynasty (c.670-750 CE) and in 680 on the death of Mu'awiya, the Caliphate succeeded to his son Yazid.

Shi'a Muslims in London commemorate Ashura ©
About the same time, Hussein, Ali's youngest son from his marriage to Fatima, the daughter of the Prophet Muhammad, and the third Shi'a Imam, was invited by the people of Kufa in Iraq to become their leader. Hussein set off for Kufa from his home in Medina with his followers and family, but was met by Yazid's forces in Karbala before reaching his destination.
Despite being hopelessly outnumbered, Hussein and his small number of companions refused to pay allegiance to Yazid and were killed in the ensuing battle. Hussein is said to have fought heroically and to have sacrificed his life for the survival of Shi'a Islam.
The Battle of Karbala is one of the most significant events in Shi'a history, from which Shi'a Islam draws its strong theme of martyrdom. It is central to Shi'a identity even today and is commemorated every year on the Day of Ashura. Millions of pilgrims visit the Imam Hussein mosque and shrine in Karbala and many Shi'a communities participate in symbolic acts of self- flagellation.