Daud’s brother Muhammad II was now placed on the throne in preference to his son Sanjar who was blinded. His reign (A.D. 1378-A.D. 1397) was marked by peace and tranquility.

He tried to put a stop to hostilities with his neighbours, the Raya of Vijayanagar, who, however, took advantage of the political troubles and consolidated his authority on the western coast including Goa. Muhammad married his two daughters to the two sons Firuz and Ahmad of his predecessor Daud.

Muhammad was essentially a man of culture. He patronized art and literature. He was himself a scholar of Persian and Arabic and many poets from Persia and Arabia flocked to his court. He established several schools for the education of the poor and the orphan.

They were spread all over Deccan particularly in the cities of Gulbarga, Bidar, Khandhar, Elichpur, Daulatabad, Choul and Dabul. He looked after the welfare of his subjects and when there was a famine in his kingdom he imported grain from Gujarat and Malwa.