This dissertation tells the tale of al-Mahalla al-Kubra during the transition from handloom crafts to the mechanized textile industry and from a local community to a battleground for the nationalist cause in the first half of the twentieth century. By exploring the relationships between culture, politics, and modern industrialization and how subaltern groups shaped their local experiences of modernity in a setting remote from the central government and the cosmopolitan culture of Cairo and Alexandria, it unpacks the social history of men and women, artisans and workers, notables and fitiwwat who were situated between national capitalism and foreign domination. The goal is to write the history of the society from the bottom up and to write a history that is an alternative to the already established histories of nationalism and colonialism. It provides a historical reconstruction and analysis of the process of assimilation undergone by the recruited peasants into urban industrial life and explores the various ways in which they and the Mahallawiyya negotiated living together and dealt with their mutual hostility on an everyday basis. Identity is the core question in this process of assimilation. Did modern, horizontal class relations actually replace traditional, vertical communal and patronage relations? To what extent did the traditional social institutions help or hinder the process of adapting to forms of social life associated with modern industry? I argue that both vertical class and horizontal communal relations co-existed and sometimes competed. In that fluid dynamic, individuals and groups acted and interacted depending on their socio-economic status, communal commitments, conjuncture or the way that a given situation developed, and a shared, often contested, discourse. / text