|The first issue of the IS-Magazine Dabiq|
The group, whose lightning advance through swathes of the two countries and declaration that it had established a new caliphate stunned world leaders in 2014, is now girding for an offensive against Iraq's Mosul, its most prized possession.
The rebels, backed by Turkish tanks and warplanes, took Dabiq and neighboring Soran after clashes on Sunday morning, said Ahmed Osman, head of the Sultan Murad group, one of the Free Syrian Army (FSA) factions involved in the fighting.
"The Daesh myth of their great battle in Dabiq is finished," he told Reuters, using a pejorative name for Islamic State.
The Free Syrian Army is an umbrella group for rebels seeking to overthrow President Bashar al-Assad in a civil war that has killed hundreds of thousands and displaced millions, dragging in regional and global powers and creating space for jihadists.
An Islamic prophecy names Dabiq as the site of a battle between Muslims and infidels that will presage doomsday, a message Islamic State used extensively in its propaganda, going so far as to name its main publication after the village.