His early reign was characterised by the conflict between the rising power of newcomers, epitomised by Yusuf Adil Shah, and the traditional Deccani nobles, led by Malik Na'ib.
The Sultan's obviously weak position led to increasing unrest amongst the nobles, particularly the powerful regional governors, some of whom, like Fathullah Imad-ul-Mulk quietly assumed the titles of royalty.
Qasim Barid was raised to Barid-ul-mumalik and made prime minister and de facto ruler, while the sultan lived a life of indulgence.
On 28 May 1490, Malik Ahmad Nizam Shah I revolted and defeated the Bahmani army led by general Jahangir Khanbuilt.
As a testament to his diplomatic and strategic acumen, Krishnadevaraya restored Sultan Mahmud Shah to power in Bidar, symbolizing his commitment to fostering discord among his Muslim neighbors.