By the late mediaeval period, Sufism (sometimes defined as Islamic mysticism) was a clear presence in every Muslim town or village, and Sufis were present in many different levels of Muslim society. However, if we were to look back to the earliest centuries of Islamic history, it becomes increasingly harder to find evidence of individuals going by the description of ‘Sufi’. Individuals with the name appear around the late eighth century C.E., but we only start to see the rise of a particular group using that name in the mid‐nineth century. But how and why did Sufism rise in this period, and what were the reasons behind its growing importance for Muslim society? By looking at the contributions of scholars in recent decades, this article will try to trace the development of Sufism from its early origins, up to its consolidation as a visible social institution during the 12th century.