The Prophet Muhammad died on June 8, 632 CE in Medina without designating a successor, creating a succession crisis. A gathering of companions elected Abu Bakr as first caliph, though some Muslims believed leadership should pass to Ali ibn Abi Talib, Muhammad's cousin and son-in-law. This dispute over whether authority should rest with elected companions or the Prophet's bloodline became the foundational division between what later developed into Sunni and Shia traditions. The resulting Rashidun caliphate expanded across Arabia, Persia, and the Levant within a generation.