He rose to the position of the chancellor of the southern government (南府宰相) during Emperor Muzong of Liao's reign.

When Emperor Jingzong assumed power in 969, Yelü Sha was tasked to command the army on Liao's southern border for possible war against the Song dynasty.

[4] In 977, Song invaded Northern Han again, and Liao army under the overall command of Yelü Sha went to assist Northern Han, meeting the Song army across a river at Baimaling (白馬嶺, in today's Yu County, Shanxi).

[5] The following year, Yelü Sha followed Han Kuangsi (韓匡嗣) to invade Song, and their army was annihilated.

Furious, Emperor Jingzong wanted to execute both, but his wife Xiao Chuo pleaded on their behalves, eventually reducing their sentences to flogging.