The Muslim religious leaders rose against the Sikhs. They proclaimed a jehad i.e. crusade against the Sikhs. They named their green flag as `The Haidri Flag`. The Muslim in general contributed liberally to this jehad. Governor Aslam Khan also deputed Mir Ataullah with 500 horses and 1,000 foot soldiers. The Sikhs under the patronage of Banda Singh Bahadur on the other hand turned their attention at first to Batala and then to Kalanaur. They drove out Muslim government officials and set up their own thanas. These were rich areas hence their conquest added much to their resources. Some Sikhs divided themselves and few went towards Lahore and exploited the country up to Shalimar Gardens. The other group moved towards Pathankot and occupied the city and its surrounding areas.

The Muslim leaders took the lead under the Haidri flag and proclaimed a jehad against the Sikhs. The Sikhs had occupied a small fort known as Qila Bhagwant Rai. With a week a huge force of crusaders came and sieged the fort. A fierce battle took place that led to immense bloodshed on both sides. The Sikhs moved out of the fort on a particular night cutting through the lines of crusaders. They soon moved out of their reach. The Muslims were greatly disappointed at their failure and went back to Lahore. Later the Sikha again gathered at fort Kotla Begam, a few miles from Lahore, and began their ravages. The crusaders also marched forward against the Fort Kotla Begam destroying many villages and killing several innocent people. They finally came face to face with the Sikhs at the foot of fort Kotla Begam.

As the crusaders arrived the Sikhs came out of their enclosures and a fierce battle ensued. The Sikhs gave a big blow to the crusaders and by evening the Muslim army was almost defeated. During their way back, the crusaders stopped at fort Bhilowal for resting in the night. The Sikhs kept a keen eye on the army hiding themselves behind bushes and trees. They kept following their enemies. The next morning the Sikhs came out of their hiding places and attacked the crusaders. The enemy army could not meet the unexpected attack and thus were badly defeated. The Sikhs took over the whole of Majha and Rearki except Lahore city.