The Great Migration of the Slavs in the dawn of the spread of the Avars in the 7th Century saw the Slavs settling in the Alps with Celts and Romans, who established the region of Karantania, which included the larger part of the eastern and central territory of what is now Austria. The Germanic people of the Bavarians had grown until the beginning of 7th Century in the west of Austria and southern Bavaria. The suppression of the Alemans, and other Rhaeto-Romanic tribes, forced them to relocate to the mountains.

Karantania, attacked by the Avars, was conquered by Bavaria in AD 745. During the following years, Bavarian settlers spread further down the Danube and up the Alps, resulting in today’s German-speaking Austria. Later, the Carolingian Franks ruled over the Bavarians, when it was Duchy of the Roman Empire. Charlemagne then won the country over Duke Tassilo III, after which the Magyars invaded and conquered most of it.

After the victory of Emperor Otto the Great over the Magyars in AD 955, new order was established in the territories of today’s Austria. After the revolt of Henry II, the duke of Bavaria, the land (marchia Orientalis, eastern march) became the main part of Austria and was ruled by Leopold of Babenberg in AD 976. Appointed by a warlord, a special dux (leader, duke) ruled over the Marches, a title which had different meanings in the Early Middle Ages. In Lumbardi-speaking countries, the title was changed to the German Margravei (Markgraf, Count of the Mark). The first archeological remnant found bearing the name ‘Austria’ (Ostarrîchi, a 10th-century usage for marchia Orientalis; Ostmark in modern German) was in Babenberg March.

In the 12th Century, The first duke of Austria increased the dynasty’s power by obtaining the Privilegium Minus from Roman Emperor Frederick I Barbarossa, which lifted Austria to a duchy status and granted privileges and reduced obligations to the Empire. In 1186, the Babenberg tribe also received the Duchy of Styria through the Georgenberg Pact, when, during the reign of Leopold VI (1198–1230), the Babenberg dukes became one of the most significant ruling families in the region. The son of Leopold VI, Frederick II, was slain in the middle of the 13th Century, thus putting an end to the line of monarchs and resulting in an interregnum (kingless state) which extended to several decades with atrocities and restless social order. Bohemia’s Otakar III was the first to bring order to the duchies of Austria, Styria and Carinthia. His successful reign was ceased when his army was defeated at Dürnkrut by Rudolf of Habsburg, who began a long dynasty in 1278.