Nawab Fazl Ali Khan III Bahadur was born in 1749 at Banganapalle.
He succeeded on the death of his paternal grandfather, Nawab Faiz Ali Khan Bahadur in 1758.
He reigned under the guardianship of the husband of his maternal aunt, Muhammad Beg Khan-i-Lang between 1758 and 1767.
Later he was again promoted to the titles of Qum Qam ud-Daula and Shamsher Jang.
He died of smallpox on 7 April 1769 and was succeeded by his nephew, Sayyid Husain Ali Khan Bahadur