In May, 1866, he was defeated near Ghazni (mainly owing to the treachery of his own troops) by Abdur Rahman, who, releasing his father, Afzal, from the prison into which he had been cast by Sher Ali, led him in triumph to Kabul, and proclaimed him Amir of Afghanistan.
The new Amir, Afzal, at once wrote to the Government of India detailing what had occurred, and expressing a hope that the friendship of the British, which he so greatly valued, would be extended to him.
He was told, in reply, that the Government recognized him as Ruler of Kabul, but that, as Sher Ali still held Kandahar and Herat, existing engagements with the latter could not be broken off.

The evident preference thus displayed for Sher Ali caused the greatest vexation to the brothers Afzal and Azim, who showed their resentment by directing an Envoy who had come from Swat to pay his respects to the new Amir to return to his own country and set on foot a holy war against the English; the Waziri _maliks_[3] in attendance at the court were dismissed with presents and directions to harass the British frontier, while an emissary was despatched on a secret mission to the Russians.
After his defeat near Ghazni, Sher Ali fled to Kandahar, and in the January of the following year (again owing to treachery in his army) he met with a second defeat near Khelat-i-Ghilzai, and lost Kandahar.
On this fact being communicated to the Government of India, Afzal Khan was in his turn recognized as Amir of Kabul and Kandahar.

But he was at the same time informed that the British Government intended to maintain a strict neutrality between the contending parties in Afghanistan.

John Lawrence, in his letter of the 20th of February, said that 'neither men, nor arms, nor money, nor assistance of any kind, have ever been supplied by my Government to Amir Sher Ali.

Your Highness and he, both equally unaided by me, have fought out the battle, each upon your own resources.