Wannan mataki ya kunshi lokacin daga shekara ta 950 Miladiyya zuwa lokacin da aka kwashe Baghdad (1259 Miladiyya), kuma yana nuna raguwar daular 'Abbasiyya har zuwa rushewarta a karshe. Muhawarorin gasa da ake kira MunaadHaraat sun ci gaba da bunkasa a karkashin tallafin halifofin 'Abbasiyya, kuma wasu daga cikin wadannan muhawarori an rubuta su a littattafai. Bayan lokaci, ruhun gasar da wadannan muhawarori suka haifar ya yadu zuwa ga jama'a, sannan rikicin mazhaba (Madh-hab) ya zama ruwan dare. An samu raguwa mai yawa a adadin mazhabobi, kuma tsarin da aikin mazhabobi hudu da suka rage ya zama an tsara su sosai. Malamai da ke cikin mazhaba guda an wajabta musu su gina Ijtihadinsu bisa ka'idojin asali (Usool) na mazhabarsu kawai. A wannan zamani an kara tsara tattara ilimin Fiqh, kuma an yi amfani da shi wajen kara rikicin mazhaba.

This stage covers the period between the year 950 CE and the sacking of Baghdad (1259 CE) and represents the decline of the ‘Abbaasid dynasty until its eventual collapse. Competitive debates called MunaadHaraat continued to flourish under the patronage of the ‘Abbaasid caliphs and some of these debates were actually recorded in books. In time, the spirit of rivalry largely generated by these debates spread to the masses, and Madh-hab factionalism became widespread. There was a drastic reduction in the number of Madh-habs, and the structure and operatin of the four that survived became highly systematized. Scholars within a Madh-hab were obliged to base their Ijtihaads solely on the fundamental principles (Usool) of their particular Madh-hab. During this period the compilation of Fiqh was further fomalized and used to further Madhhab rivalry.

A wannan zamani, yawan manyan Madhhabai (makarantun shari'a na Musulunci) ya ragu zuwa hudu; uku manyan daya kuma karami. Watau, Madhhabban manyan malamai irin su al-Awzaa'ee, Sufyaan ath-Thawree, Ibn Abee Laylaa, Abu Thawr da al-Layth ibn Sa'd duk sun bace, inda suka bar Madhhabban Abu Haneefah, Maalik, ash-Shaafi'ee da Ahmad ibn Hambal kawai. Bayan lokaci, wadannan makarantun tunanin shari'a sun zama masu rinjaye har talakawa suka manta cewa akwai wasu makarantu ma. Kowace daga cikin wadannan makarantu ta fara samun karfi irin nata, kuma mabiyansu suka fara al'adar kiran kansu da sunan Madhhabinsu. Misali, al-Husayn ibn Mas'oud al-Baghawee, marubucin littafin fiqhu mashahuri, Sharh as-Sunnah, ana kiransa Shaafi'ee saboda Madhhabin ash-Shaafi'ee.

During this stage, the number of major Madh-habs (schools of Islamic law) dwindled to four; three major and one minor. In order words , the Madh-habs of great Imaams like al-Awzaa’ee, Sufyaan ath-Thawree, Ibn Abee Laylaa, Abu Thawr and al-Layth ibn Sa’d had all disappeared leaving only the Madh-habs of Abu Haneefah, Maalik, ash-Shaafi’ee and Ahmad ibn Hambal. In time, these schools of Islamic legal thought became so predominant that the common people soon forgot that any other schools, even existed. Each of these schools soon took on a dynamism of its own and their followers started the practice of naming themselves after their respective Madh-habs. For example, al-Husayn ibn Mas’oud alBaghawee, author of the Fiqh classic, Sharh as-Sunnah, was Shaafi’ee after the Shaafi’ee Madh-hab.

A wannan mataki, malaman kowace Madhhab sun yi nazari a kan dukkan hukunce-hukuncen malaman kafa na Madhhabansu, suka tsamo ƙa'idodin asali da suke bayan hukunce-hukuncensu, suka kuma rubuta su a tsari. Haka kuma sun yi ijtihadi kaɗan a kan al'amuran da malaman kafa ba su taɓa fuskanta ba. Sai dai wannan fage ya ƙare ba da daɗewa ba, saboda yawaitar amfani da fiqhu na zato (hasashe), a cikin muhawarar kotu da wajenta.

During this stage the scholars of each Madh-hab analysed all the rulings of their Madh-habs’ founding scholars, deduced the fundamental principles behind their rulings and codified them. They also made limited Ijtihaads on issues which the founders had not come across. However, this area soon became exhausted due to the widespread use of hypothetical Fiqh, in and outside of court debates.

A ƙarshe, an watsar da ijtihadi mai cin gashin kansa a madadin ijtihadi bisa ƙayyadaddun ka'idoji na wani madhhab na musamman.

Ultimately independent Ijtihaad was discarded in favor of Ijtihaad based upon the established principles of a particular Madh-hab.

Ijtihaad Madh-habee, kamar yadda wannan sabon nau'in tunani ya zama sananne, ya dogara ne akan fitar da hukunce-hukunce ga sabbin al'amura bisa ga malaman wannan zamani, wanda wani lokaci sukan saba wa shugabannin mazhabobinsu a cikin al'amuran Furoo' (ka'idoji na biyu), amma da wuya a al'amuran Usool (ka'idoji na asali).