At the beginning of this period Amorites established themselves in various Mesopotamian cities including Babylon. During the so-called Old Babylonian period (1800-1600 BC) literary activity flourished. Perhaps the most famous monument from this time is the stele of Hammurabi, now in the Musée du Louvre, Paris. Hammurabi was king of Babylon from about 1792-1750 BC. In about 1760 BC he defeated the other southern states of Iraq and expanded his control into north Mesopotamia. On his death his empire gradually shrank until it was brought to an end in a raid by the Hittites from Anatolia around 1595 BC.

Following the collapse of the ruling dynasty, Kassite leaders claimed the Babylonian throne. Originating as tribal groups in the Zagros Mountains to the north-east of Babylonia, the Kassites retained power for about 400 years. However, in the 13th century BC Assyria to the north and Elam to the west began to threaten Babylonia, and eventually brought an end to Kassite control. In 1157 BC royal power was claimed by a new dynasty based at the city of Isin. Nonetheless, by 1100 BC, Aramaean tribal groups had begun to launch raids and Babylonia entered a period of serious crisis.