During his reign, Muršili III reverted the capital from Tarhuntassa (as it had been under Muwatalli) back to Hattusa (KBo 21.15 i 11-12).
His strategic military victory over Ramesses II of Egypt in the 1274 BC Battle of Kadesh was favourably contrasted with the rather "undistinguished and largely unproven occupant of the throne of Hattusa" – Urhi-Teshub/Muršili III – who had lost Hanigalbat to Assyria in his reign.
[3] Hattusili's forces even included elements of the Kaska peoples who were sworn enemies of the Hittites.
After his victory, Hattusili appointed Muršili's brother or brother-in-law, Kurunta, as the vassal king over Tarhuntassa in order to win the latter's loyalty.
Nevertheless, it is believed to have been the relief of Muršili III, destroyed by his uncle as an act of Damnatio memoriae (condemnation of memory).
[5] Muršili fled to Egypt, the land of his country's enemy, after the failure of his plots to oust his uncle from the throne.
Hattusili III responded to this event by demanding that Ramesses II extradite his nephew back to Hatti.
This letter precipitated a crisis in relations between Egypt and Hatti when Ramesses denied any knowledge of Muršili's whereabouts in his country and the two empires came dangerously close to war.
However, both kings eventually decided to resolve the issue by making peace in Year 21 of Ramesses II.