The article describes that in the second half of the 19th century, industrialization, urbanization, economic development in Azerbaijan influenced the views of enlighteners and drew the factor of modernity forth. Since then, enlightenment laid the foundation for the transition from Pan-Islamism to nationalism and from theocratic statehood to modern national statehood. Enlightenment separated literary and historical view from the Turkic-Islamic union and directed it to the formation and development of the Azerbaijani people`s national identity and self-awareness. At the beginning of the 19th century, “Europeanization, Westernization” manifested itself in the entire Turkic-Muslim world. There were supporters and opponents of this issue, as well as neutral ones among the Turkish-Muslim intelligentsia. Although the first generation of enlighteners in Azerbaijan appreciated Western culture, they preferred the East. Unlike the first generation of enlighteners, M.F.Akhundzada, as a supporter of Westernization, initiated the ideas of a constitutional state, Europeanization, modernization, democratic state-religion, such as Europe and the separation of religion from the state for the first time in the Turkic-Muslim world.