Muhammad Quli succeeded to the throne after the death of Ibrahim on 5 May, 1580. His long reign of thirty-two years enjoyed comparative peace and prosperity. His reign also saw the foundation of the new city of Hyderabad.

Golkonda had become quite conjested and it was not possible to extend it to westwards due to scarcity of water. Quli, therefore, decided to build a new metropolis on the river Musi. The plan of this city was ready by 1590-91 when the work on this grand project began.

Quli tried his utmost to beautify this city with gardens, palaces, hamams and mosques. In the centre of the city were built two stately buildings Jami Mosque and the famous Charminar or the Four Minarets. Char Minar is a square building, 60 feet on each side while each tower rises to a height of 160 feet from the plinth.

There is a magnificent mosque on the western side. It could accommodate about 800 worshippers. Besides, Quli built a palace on a hill which overlooked Hussain Sagar. He constructed another palace on a hill called Koh-i-Tur. Quli also built a hospital for the public which was known as Dar-us-Shifa.

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Mir Mumin, the Peshwa, was responsible for planning the city. He also built two mosques in the suburbs. The most artistic of all the buildings is the mausoleum of the Sultan.