Ghouse Khan was born to the Azam Jah, the eleventh Nawab of the Carnatic in about 1824.
In 1825, Ghouse Khan was proclaimed king with his uncle Azim Jah as regent.
Azim Jah served as regent to the young king from 1825 till 1842 when Ghouse Khan was formally installed as the Nawab of the Carnatic by Viceroy Lord Elphinstone.
During his reign, Ghouse Khan established the Muhammadan Public Library in Madras and a choultry called Langar Khana.
The candidatures of Ghouse Khan's uncle Azim Jah, the only possible successor to the throne were set aside and the kingdom was formally annexed by the British East India Company as per the Doctrine of Lapse.