The party was dissolved in 1958 after the declaration of Martial Law by General Muhammad Ayub Khan, the Commander-in-Chief of Pakistan Army.

Under the premiership of Liaquat Ali Khan, the Muslim League government successfully drafted the Objectives Resolution.

Although Liaquat Ali Khan was a progressive, he introduced constitutional reforms in line with religious values and principles.

Khwaja Nazimuddin opposed equal minority rights and thus, the party lost the support of much of the progressive elite.

Pakistan was racked by riots, and in the first national elections in May 1955 (held by a system of indirect voting) the Muslim League was heavily defeated.

In October 1958, the Army seized power and the martial law regime of Muhammad Ayub Khan banned all political parties.

At the controversial elections held by the military regime of Pervez Musharraf in October, five different parties using the name Muslim League contested seats.