This article looks at modern sectarian (here referring to Sunni/Shi'a) identities and their interaction with nationalism in the Middle East. In doing so I make three interrelated claims: 1) the term ‘sectarianism’ is distortive and analytically counterproductive. A better understanding of modern sectarian identity requires us to jettison the term. 2) Once discarded, our focus can then shift to sectarian identity: how it is constructed, perceived, utilized and so forth. A holistic understanding of sectarian identity must recognize the multiple fields upon which it is constructed and contested. The model adopted here frames sectarian identity as simultaneously operating on four fields: doctrinal, subnational, transnational and, crucially for our purposes, the national dimension. 3) Thirdly, this article challenges the assumptions regarding national and sectarian identities in the modern Middle East. Contrary to conventional wisdom, modern sectarian identities are deeply embedded in the prism of the nation-state and are inextricably linked to nationalism and national identity. The article will rely primarily on the example of modern Iraq but, as will be seen, the Iraqi example is significantly echoed in the cases of Bahrain, Syria and Lebanon.