Following a fresh upsurge of industrial unrest in September, which spread from the Moscow rail-worker's to various sections of the economy, effectively cutting off communication and rapidly bringing the entire country to a virtual standstill - the 1905 revolution entered a new phase, in which the action of the newly formed soviets (or council) would take centre-stage. Russia's first political general strike, lasting from September to October 30th, appeared to be the climax of the revolution. Although strikes had been common in Russia in the years leading up to 1905, this powerful weapon of civil disobedience effectively paralysed the whole country. Wood describes the Great October Strike as "a spontaneous expression of the whole people's pent up frustration at the obstinacy of an intellectually and administratively bankrupt regime." Yet there was no organised leadership, no centrally-co-ordinated plan of action and no universally agreed programme of reform behind the movement. An extremely important by-product was the formation of the St Petersburg soviet of Workers Deputies (eventually led by Leon Trotsky) on the 13th of October, in order to direct and co-ordinate the strike - it was the most famous of around 60 worker assemblies, while in the countryside the Peasants formed a nation-wide Peasant Union.

The soviets were composed of democratically elected workers of various factories, and while the government reeled in a state of confusion and immobility, the soviets achieved a kind of quasi-official status, wherever the government was in retreat. No one needed to convince the workers that such organisation was crucial. Although many of the soviets only functioned for a short period, there importance should not be underestimated - for many workers this was their first taste of direct democracy and self-government. The soviets were created by workers to solve their immediate problems, for example winning the strike, the eight-hour day, working conditions and gaining political rights. However, the role of the soviets evolved quickly into an organ of the general and political representation of workers - in short, a "workers parliament". Their potential as bases for political agitation were immediately recognised be revolutionaries, and although they were not involved in the early stages, and gained little in their belated attempts to exploit the situation, the Bolsheviks and Mensheviks attempted exercise some control over the workers by competing for the leadership of the soviets. The Mensheviks gained the upper hand, although both they and the soviets remained extremely moderate in nature. Lynch argues that the strikes occurred in spite of, rather than because of the action of revolutionaries, and with the exception of Trotsky, none of the Social Democrats made any real impact on events.

Nevertheless, Nicholas II was faced with the most united opposition in Romanov history, as nearly all Russia seemed to act with a single will - to end the evils of autocracy and industrialisation. The October 17th Manifesto represents a capitulation by the government, granting concessions in order to end the strike. But from the outset, the government intended to divide the opposition forces and thus "take the wind out of the sails of the revolution" and they succeeded, combining acts of concession with selective repression. The St Petersburg soviet eventually lost its hold on the workers and the call for a general strike issued in November was a complete failure - many Russians were either satisfied or sufficiently scared by the reforms of the October Manifesto. Meanwhile Nicholas became determined to crush the continuing rebellions and bring the country to order. By 3rd December, the members of the St Petersburg soviets were arrested, and their leaders tried and exiled. Only in Moscow did the soviet, with much Bolshevik urging, turn into a poorly organised armed rising, but by the end of December the revolution was over at a cost of hundreds of lives, crushed by government troops.

From 1905 - 1921 political parties enjoyed a brief period of legal existence and Trade Unions were permitted to legalise from 1906. Lenin describes the events of 1905 not as a revolution, but as a 'dress rehearsal for revolution' - the experience and structure of the 1905 soviets were repeated in the deepening social crisis of 1917, for example the Petrograd soviet of Workers' and Soldiers' Deputies were directly modelled on the 1905 soviets. The events of the General strike of 1905 and the operation and disintegration of the soviets provided lessons which the revolutionaries would not forget. For example, the failure to secure wholehearted and sustained support from the mass, chiefly because their programme did not represent the wishes of the people. By 1917, through the promise of "Land and Peace", Lenin was able to reverse this situation and gain, at least temporarily, the support of the people.