Misfortune befell the city with the conquest of the Deccan by the Mughal Emperor Aurangzeb in 1687. The headquarters of the Deccan then shifted to Aurangabad under the Mughal rule. In 1763, the Nizam shifted the headquarters to Hyderabad and again the city flourished.
It was in 1769 that Hyderabad got preeminence after Nizam Ali Khan Asaf Jah-II, the second ruler of the dynasty, made it the capital of his kingdom instead of Aurangabad. By then, two bloody battles had been fought for Hyderabad.