On April 20, 1447, Ala al-Dawla Mirza's army surprised and attacked the city of Nishapur.
Abdal-Latif Mirza was defeated and imprisoned whereas, Gawhar Shad and the Tarkhans were freed.
At that moment arrived Ulugh Beg's envoy Sadr Nizam-al-Din Mirak Mahmud who conveyed to Ala al-Dawla Mirza a message of peace and a treaty was concluded whereby Chechektu valley (east of Murghab River) was the limit of Ala al-Dawla Mirza's territory and of the Murghab basin his North-western limit.
Abdal-Latif Mirza was released as a part of the treaty and was now appointed governor of Balkh by his father.
Ala al-Dawla Mirza then turned his attention towards his renegade brother Abul-Qasim Babur Mirza whom he managed to stave off by making another territorial treaty with him settling Quchan as the border between them.