Abductive Analysis is a new approach to generate theory from qualitative observations grounded in the work of pragmatist Charles S. Peirce. Abduction should be understood in contrast to the better known processes of induction (finding new cases of existing theories) and deduction (testing an existing theory with new observations). Abduction is required when you encounter surprising, anomalous observations that do not fit existing theories and need to come up with a new theory to accommodate these observations. It is the most creative form of theorizing. Abductive analysis harnesses the notion of abduction for qualitative researchers, offering methodological guidance on how to structure research to cultivate anomalies findings and to work with such observations to generate theoretical insights.