Dhanaji tells Chandrasen that he should support Shiva. Dhanaji falls on the ground when Chandrasen covers Dhanaji's face with his hand and suffocates him to death. Bajirao gets shocked to learn that Dhanaji has passed away. Later, Chandrasen lights Dhanaji's funeral pyre in front of all the soldiers. Shahu appoints Chandrasen as Commander of his army. Later, he appoints Balaji Vishwanath as 'Peshwa' of his kingdom.