This article contains a careful description and analysis of the transformation of Hizballah from a small rag‐tag militia, skillfully combining terrorist and guerrilla warfare techniques with effective social action on the local level during the chaos of Lebanon's civil war, to a formidable, legitimate political, military and social force on the Lebanese scene in the 1990's, in what has been described as its ‘Lebanonization’ process. This so‐called ‘Lebanonization’ process of Hizballah has become a trademark of the movement. It is visible in the close interrelationship between its political, social, and military activity which has extended its opportunities. It shows an ability to exercise pragmatic judgement within the conditions and limitations imposed on it by Syria's agenda and within the confessional nature of Lebanon's political make‐up. It also demonstrates the limits of Hizballah's manoeuvring within the framework of the wider Iranian‐Syrian relationship and the limits to its ability in presenting itself as an alternative oppositional force amidst sectarian politics and Syrian hegemony. Hizballah strongly emphasizes that it is entirely Lebanese in character rather than a foreign entity directed by Iran in order to reinforce its internal legitimacy within Lebanon.