The story of Einstein's struggle to create a general theory of relativity, and his early discontentment with the final form of the theory , is well known in broad outline. Thanks to the work of John Norton and others, much of the fine detail of the story is also now known. One aspect of Einstein's work in this period has, however, been relatively neglected: Einstein's commitment to Mach's ideas on inertia, and the influence this commitment had on Einstein's work on (...) general relativity from 1907 to 1918. In this paper published writings and archival material are examined, to try to reconstruct the details of Einstein's thinking about inertia and gravitation, and the role that Mach's ideas played in Einstein's crucial work on the general theory. By the end, a clear picture of Einstein's conceptions of Mach's ideas on inertia, and their philosophical motivations, will emerge. Several surprising conclusions also emerge: Einstein's desire for a Machian gravitation theory was the central force driving his work from 1912 to 1915, keeping him going despite numerous frustrating setbacks; Einstein's continued commitment to Mach's ideas in 1916–1917 kept him at work trying various strategies of modification of the field equations, in order to exclude anti-Machian solutions ; and as late as early 1918, Einstein was ready to call the whole General Theory a failure if no way of squaring it with Mach's ideas on inertia could be found. But by 1920 Einstein advocated a view that granted spacetime independent existence with physical qualities of its own, a complete break with his earlier Machian views. (shrink)