He was succeeded by his younger brother Muhammad Khan who assumed the title of Shams-ud-din Muhammad III. Soon after his accession, occurred the murder of Khwaja- i-Jahan Turk in the open court at the instance of the queen dowager had been enraged at his highhanded policies.
The queen herself decided to quit active politics and thus the way was cleared for the appointment of Mahmud Gawan as vakil-us-sultanat (deputy of the kingdom) of Prime Minister. The title of Khwaja-i-Jahan was also conferred on him. It was during Gawan’s tenure of office that the Bahmani state reached the peak of its glory. The boundaries of the state were extended from Orissa to Goa.
Besides, Konkan, Hubli, Belgaum and Bagalkot, the Godavari-Krishna Doab was also conquered. Mahmud Khalji of Malwa was humbled and Kherala was occupied but was returned after signing a treaty of friendship and mutual respect. Berar was, however, retained.
The combined armies of the Bahmanis and the Vijayanagar defeated Kapileshwar of Orissa which led to a scramble for power. Mangal Rai, a brahman, usurped the gaddi but was driven out by the rightful claimant Hamira with the help of Sultan Muhammad. Hamira thus regained the throne of Jajnagar.