During much of his reign Alivardi encountered frequent Maratha raids under Raghuji Bhonsle, culminating in the surrender of the province of Orissa in a peace settlement in 1751.
[5][6] Muhammad Ali's mother was a Deccani Muslim descending from the Iranian Turkmen Afshar tribe of Khorasan.
Muhammad Ali was named superintendent of the filkhana (elephant-stables) as well as being given responsibility over the zardozkhana (department of embroidered cloths).
Finding employment with the latter, Muhammad Ali and Mirza Ahmad proved themselves capable in supporting his government, later even aiding Shuja-ud-Din in becoming Nawab of Bengal.
[11] In 1728, Shuja-ud-Din promoted Muhammad Ali to Faujdar (General) of Rajmahal and entitled him as Alivardi Khan.
A year later, he was titled Shuja ul-Mulk (Hero of the country), Hassemm ud-Daula (Sword of the state) and Mahabat Jang (Horror in War) and the rank of Paach Hazari Mansabdar (The rank holder of 5000) by Nawab Shuja ud-Din and returned to Azimabad.
Then on 3 March 1741, he defeated Rustam Jang, deputy governor of Orissa and a relative of Sarfaraz Khan, in the Battle of Phulwarion.
[14] Immediately after his usurpation of power, Alivardi had his takeover legitimized by the Mughal Emperor Muhammad Shah and resumed the policies of Murshid Quli Khan.
Alivardi was a brilliant artillery tactician, though his armies were overrun by the large force of the Marathas from Berar who had arrived to pillage and conquer the territories of Bengal under the command of Raghoji I Bhonsle.
He also saved Bengal from the effects of war of succession in Austria through proper vigilance and precautions, unlike south India, which got caught up in it.
He maintained a policy of neutrality towards European powers and forbade the British, French and Dutch to have any hostility against each other in his dominion.