During the reign of Muhammad Quli, the conflict with Bijapur continued. The main army planned the capture of Bijapur, whose citadel was defended by Chandi Bibi, the brave widow of Ali Adil Shah. Local revolts of Kondavidu, Nandyal, Gandikota, and other places were suppressed. An expedition sent by Vijayanagar was defeated by the Golconda forces. Mohammad Quli’s army crossed the Krishna and attacked the fort of Muslimadugu, a place famous for diamond mines in its neighbourhood, and subjugated it. Next, Nandyal and Velgode were overpowered, and then Sirvel, Jammalamadugu, and Chennur. Hande Hanumappa of Anantapur, a fief-holder under the Qutb Shahis, attacked the famous temple of Ahobilam and plundered it of the jewels belonging to the idol.
This was the period when the Mughal influence began to be felt in the Deccan. The Sultan of Ahmadnagar appealed to Bijapur and Golconda to join hands in a common struggle against the Mughals. They both agreed to the proposal and sent large armies in support of Ahmadnagar. But, before they reached Ahmadnagar, the Mughals occupied the city. This happened in December 1595. However, the fort of Ahmadnagar did not yield, thanks to the strong resistance of the defenders who fought under the leadership of Chand Bibi. A treaty was concluded according to which Berar was ceded to the Mughals, leaving the bulk of the Nizam Shahi territory intact. A decisive battle was fought at Sonapet in January 1597 between Bijapur, Golconda, and Ahmadnagar on one side and the Mughals on the other. The conflict resulted in the flight of the allies. Ahmadnagar fell in 1600 A.D. Chand Bibi sought to enter into a treaty with the Mughals, but they refused. The valorous heroine was murdered. The whole of the Nizam Shahi territory was as good as gone.
During the closing years of his reign, Muhammad Quli quelled the revolt of the commandant of Kondavidu, carried on a long-drawn guerilla war against Bijapur, and besieged Penukonda, the Vijayanagar capital. The siege was raised on false promises made by Venkata II. As a result, Muhammad Quli had to retrace his steps. He was forced to surrender the great fortress of Gandikota.
Muhammad Quli Qutb Shah received the envoy of Akbar, Masood Baig, with great respect. He sent costly gifts to the Mughal emperor. Friendship continued till Akbar’s death in 1605 C.E. Jahangir’s attacks on Golconda caused damage to their friendship. Muhammad Quli-Qutb Shah died in the year 1612 C.E.