Nizam–Ul-Mulk was the founder of the AsafJahi dynasty. His original name was Mir Qamruddin Chin Qillich Khan. His ancestors came from Samarkhand and served in the court of ShahJahan and Aurangzeb. Nizam–Ul-Mulk was the eldest son of Shihabuddin, Mughal governor of Berar and Gujarat. At the age of six, he was appointed as mansabdar by Aurangazeb, and gradually risen to various administrative positions. After the demise of Aurangazeb, Mir Qamruddin became the viceroy of Awadh under FarukhSiyar, who bestowed the title Nizam Ul-Mulk on him. His allegiance to the Mughal emperor Muhammad Shah, he was conferred with got him the title AsafJah. Though he accepted the Mughal authority, practically he ruled the Deccan independently. Thus, Hyderabad State virtually came into existence since 1724 under the rule of AsafJahis.

During his tenure, Nizam –Ul-Mulk came into conflict with the Marathas. Peshwa Baji Rao defeated him in the battles of Phalkhed and Bhopal. Nizam compelled to grant permission to Marathas to collect Chauth and Sardeshmukhi in Deccan Province. Nizam-ul-Mulk played a key role as a mediator during Nadar Shah’s invasion of India in 1738C.E. With his military talents, Nizam extended the Deccan territories from the river Tapti to Mysore and from Karnataka to Tiruchinapally. He died at the age of 76 in 1748. He was also a poet and fluent in Persian and Turkish. He gave patronage to scholars of Urdu to enrich the language.

The death of Nizam –ul-Mulk was followed by a civil war. Between 1748 and 1762, three contestents came to the throne. They are Nasir Jung(1748-50), Mujaffar Jung (1750-51) and Salabat Jung(1751-62). Both the English and the French used this internal rivalry among the successors as an opportunity for their colonial expansion. As a result of such rivalries, three Carnatic wars took place between 1748 and 1762. Though they ruled for some time, these three rulers are not considered as Nizams.