Mahadaji Shinde was a Maratha ruler of the state of Gwalior in central India. Mahadaji was instrumental in resurrecting Maratha power in North India after the Third Battle of Panipat in 1761, and rose to become a trusted lieutenant of the Peshwa, leader of the Maratha Empire. During his reign, Gwalior became the leading state in the Maratha Empire and one of the foremost military powers in India. Between 1745 and 1761, Mahadji fought in around 50 wars, including those in Malwa, Rajputana, Bundelkhand, Brij, Doab, Rohilkhand, Delhi, Kunjpur, and in the Battle of Panipat. Among the campaigns which Mahadji assisted, the notable ones include the ones at Chandravati Ganj (1746), Fatehabad (1746), Badi Sadri (1747), Marwar (1747), and Himat Nagar (1748)
The army of Malharrao Holkar joined the Shinde army to bring all the Rajput states under Maratha control and force them to accept Maratha suzerainty, as directed by the Peshwa. Under this campaign, several city states were added to the Maratha Empire such as Medtya, Ratangarh, Lalgarh, Bikaner, Laswari, Lachhmangarh, Kumher and Deeg and the states with territory of Jaipur and Jodhpur agreed to become vassals of the Maratha Empire.
Mathura which was under Mughal rule was conquered by Mahadji in 1755 where he reconstructed various old temples and established a centre for Sanskrit learning. In January 1758, Mahadji established Gwalior as his headquarters.
When the Maratha army crossed the Narmada river in February 1770, the Jat king Nawal Singh of Bharatpur opposed them. However, in the battle on 6 April 1770 Mahadji defeated him and Maratha supremacy over the North was re-established.
In early 1771, ten years after the collapse of Maratha supremacy in North India following the Third Battle of Panipat, Mahadji recaptured Delhi, and installed Shah Alam II as the puppet ruler on the Mughal throne in January 1772.
Mahadji ruled the Punjab and Sikh sardars and other rulers of the cis-Sutlej region paid tributes to him.
In January 1779, the forces of British troops under command of Col. Egerton marched towards Pune. The Maratha army was commanded by Mahadji Shinde and Tukojirao Holkar. Mahadji slowed down the British march by firing from above a hill and sent forces under Jiwbadada Bakshi and Lakhbaji to cut off its supply lines by burning food and fodder. When they found out about this, the British halted at Talegaon near Pune. The Maratha cavalry harassed the British from all sides and applying a scorched earth policy, burnt farmland and poisoned wells. The British began to withdraw from Talegaon in the middle of the night, but the Marathas attacked, forcing them to halt at Wadgaon, where the British force was surrounded on 12 January 1779.
On 16 January, the British signed the Treaty of Wadgaon that forced the Bombay government to relinquish all territories acquired by East India Company in western India since 1773 which included Sashti (Salsette), Thane, and the entire Gujarat region. The British were also made to pay Rs. 41,000 as an indemnity to the army of Mahadji.