In 371, under the Former Qin dynasty, Zhai Bin and his people were forcibly relocated to Xin'an and Mianchi in the east, a decision that sparked discontent among the Dingling.

His nephew, Zhai Zhen, fled from Ye and began a rebellion, forming a base in Chengying (承營; around present-day Xingtai, Hebei) and allying with Qin.

Later that year, when Murong Chui besieged Xingtang, Zhai Cheng's general, Xianyu De (鮮于得) beheaded him and surrendered to Later Yan.

He moved his capital to Huatai (滑台, in modern Anyang, Henan), intending to use the Yellow River as a defence against Later Yan, though throughout his reign, he more frequently clashed with the Eastern Jin.

In 389, he captured Yingyang Commandery (滎陽, roughly modern Zhengzhou, Henan) from Jin and had the Later Yan prince and Inspector of Ji province, Murong Wen assassinated.

Jin forces led by Liu Laozhi later captured Taishan and defeated Zhai Liao at Huatai, but they did not destroy the state before withdrawing.

The ruler of Western Yan, Murong Yong, initially appointed Zhai Zhao as a general and bestowed him the title of Prince of Chen.