Abstract Although nationalism appears to be a kind of particularism, in fact we often find nationalist movements emerging within the trend toward universalism. For example, contemporary storms of nationalism are taking place in an era of unprecedented universalization in politics, economics and technology. The purpose of this paper is to elucidate the mechanism which generates nationalism by explaining the contradictory intersection between particularism and universalism. First, the paper looks at the difficulty in defining the nation, and shows that there are two historical stages in the establishment of nation. Second. the difference between social experiences in a nation and those in pre‐nation society are discovered through consideration of the fact that the novel and the nation developed contemporaneously. Thus it is established that social experiences in nation are characterized by the acquisition of special transcendent viewpoint. Third, the paper searches for the origin of nationalism in the traditional European political theory according to which the king has two bodies. Fourth, the paper attempts to integrate two excellent theories of nationalism: those of Gellner and Anderson. Fifth, the paper analyses types of nationalism so as to clarify the inner structure of the transcendence proper to nationalism. Finally, this paper explains the mechanism of nationalism by relating it to the dynamics of capitalism. The explanation will enable us to understand why the nationalism chauvinism suddenly reemerges in today's Eastern European societies when they are exposed to capital