Muazzam was deputed governor of the Northwest territories by Aurangzeb. His province included those parts of the Punjab where the Sikh faith was blossoming. As governor, Muazzam relaxed the enforcement of Aurangzeb's severe edicts, and an uneasy calm prevailed in the province for a brief time.
After Aurangzeb's death, Muazzam Bahadur Shah took the throne. A war of succession began immediately after Aurangzeb died. One younger brother, Prince Azam Shah, proclaimed himself emperor and marched towards Delhi, where he unsuccessfully fought Bahadur Shah and died after a nominal reign of three months. Another brother, Muhammad Kam Bakhsh, was killed in 1709.