He played a pivotal role in Ismail I's conquests and expansion in Asia Minor and Mesopotamia, and functioned as governor of the Diyarbakr Province from 1506 to 1514.

[2][3] When Ismail I returned to Khoy in 1506, after some skirmishes with Ala al-Dawla Bozkurt, the ruler of the Dulkadir, he appointed Mohammad Khan Ustajlu as the new governor (hakem) of Diyarbakr.

[4] Aware of the massive approach, Mohammad Khan Ustajlu, during his retreat from his governoral seat in Diyarbakr, devastated the area, which slowed the Ottoman progress towards the east in the ensuing weeks to come.

[4] On 23 August 1514, the day the decisive battle took place, Mohammad Khan Ustajlu and Nur-Ali Khalifa were the two Safavid commanders who had first-hand experience with the Ottomans ways of warfare.

[4] Ismail I chose to endorse Durmish Khan Shamlu's suggestion for the attack and thus the Ottomans were allowed to prepare their defenses at their leisure.