[5][6] Mudhoji had initially opposed his brother Janoji Bhonsle's accession to the throne of Nagpur.

In the year 1777 he cautiously entered into agreements with the English, who were then preparing to support the claims of the upstart Raghunath Rao as Peshwa.

[7][8] Nana Phadnavis convinced Mudhoji to join an alliance against Tipu Sultan on his stay in Poona.

[9] In 1785, he nominally added Mandla and the Upper Narmada Valley to the Nagpur Kingdom through a deal with the Peshwa, paying twenty-seven lakh rupees to the Poona government.

[3] After his death, his son, the now mature Raghoji II Bhonsle assumed control of the government.