This study focuses on the Ḥanafī school of jurisprudence that emerged in the Khwārazm region during the 5th to 7th centuries AH, aiming to determine its place within the broader Ḥanafī legal tradition. Within the scope of this study, the historical period starting with Abū ʿImrān al-Baqqālī (d. 452/1060), regarded as the pioneer of the Khwārazmian legal school, and culminating with one of its prominent figures, Abū ’l-Rajāʾ al-Zāhidī (d. 658/1260), has been examined. The geographical, socio-cultural, customary, and political background influencing the formation of the Khwārazm school of law has been analyzed in detail. The theological background that played a role in shaping this school has also been discussed. To this end, the motivations and intellectual foundations behind the emergence of the Khwārazm legal school have been explored, and a comparative evaluation has been conducted with the legal traditions of Khurāsān, Samarqand, Bukhara, and Balkh. The study adopts a historical analysis and textual interpretation methodology. In the textual analysis, sub-methods such as literature review, document analysis, induction, evaluation of field data, and comparative interpretation have been employed. As a result of the research, it has been observed that the Khwārazm school was largely nourished by the Ḥanafī tradition of Iraq in the fields of kalām and uṣūl al-fiqh, and that it interacted with the views of scholars from these circles. However, considering the unique geographical, historical, and socio-cultural dynamics of Khwārazm, the school gradually underwent an original transformation, acquiring certain features that distinguished it from classical Iraqi Ḥanafism. One of the distinguishing features of this school was its active engagement with kalām and its adoption of the Muʿtazilite theological framework. Nevertheless, this Muʿtazilite thought evolved over time in response to the intellectual and social conditions of the region, giving rise to a local and distinctive identity distinct from the classical Baghdad Muʿtazilism. This Muʿtazilite tendency in Khwārazm eventually took on the character of a “Sunnī-leaning Muʿtazilite thought” or a “Muʿtazilite thought closely aligned with Ahl al-Sunnah”. Additionally, it has been found that members of this school adopted the method of istiḥsān and the principle of taysīr, grounded in custom and public interest, applying these principles in judicial rulings and fatwās.