In this year, Sultan Berkyaruk passed away. He had appointed his younger son Melikshāh as the walī al-ʿahd (heir apparent). At the time of his death, his son Melikshāh was four years and a few months old. After his father's death, the khutba was read in Melikshāh's name in Baghdad. While his name was mentioned in the khutba, dinārs and dirhams were scattered. His atābeg (guardian) was Emir Iyāz, who was given the laqab (honorific title) Jalāl al-Dawla. Later, Sultan Muḥammad came to Baghdad. The state dignitaries met him outside the city to make peace with him. The peace treaty was taken by Kayyā al-Harāsī. On the western bank of Baghdad, the khutba was read for Sultan Muḥammad, and on the eastern bank for his nephew Melikshāh. Eventually, Emir Iyāz was killed. Melikshāh was given the rutātir (standard), the symbols of state, and the office of vizierate. Vizier Saʿd al-Dawla Kayyā al-Harāsī was present at the lesson he gave at the Nizāmiyya so that people would be inclined towards knowledge.
On the eighth of Rajab of this year, the decree ordering the dhimmīs to wear distinctive clothing, which had been issued in the year 484 AH, was annulled. The reason for this annulment was not known.
In this year, many battles took place between the Egyptians and the Crusaders. The Egyptians killed many Crusaders. However, after that, the Crusaders were victorious over the Egyptians and killed many Egyptians.