In the changed circumstances, French made Salabath Jung, another son of AsafJha as the Nizam of Hyderabad. An officer named Bussi was stationed in Hyderabad for his protection by French.

In Carnatic Chandasaheb was the Nawab with the help of French. Robert Clive of East India Company attacked Arcot, the capital city of Carnatic and defeated Chandsaheb. Chandsaheb was imprisoned and later killed in this war. In the place of Chandsaheb, the English named Mahammad Ali, the son of Anwaruddin, as the Nawab of Carnatic.

The second Carnatic war ended with the Treaty of Pondicherry. French recalled Dupleix. This war brought laurels to English, while French suffered a political setback.

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