In 1463, Sultan Mahammad Shah Bāhmani II of Bidar sent Sultan Quli Qutb-ul-Mulk as the Subedar of the Hyderabad region. After the disintegration of Bāhmani Kingdom in 1518, Sultan Quli declared independence and assumed the title Sultan Quli Qutb Shah; he based his capital in the Kākatīya fort of Golconda and founded the Qutb Shahi dynasty.
In 1589, the fifth ruler Muhammad Quli Qutb Shah shifted the capital to the present city of Hyderabad on the bank of the river Musi. We have some stories on the origin of the name of Hyderabad. The notable ones among them are that it was either derived from Muhammad Quli Qutab Shah’s son Hyder or from the name of a court dancer Bhagmati who was given the title Hyder Mahal.