War between Tipu Sultan and British began in 1789 and ended in Tipu's defeat in 1792. Even though Tipu fought with exemplary bravery, Lord Cornwallis the Governor General had succeeded through shrewd diplomacy in isolating him by wining over the Marathas, the Nizam and the rulers of Travancore and Coorg. This war again revealed that the Indian powers were short-sighted enough to aid the foreigner against another Indian power for the sake of temporary advantages. The Third Mysore War came to an end by the Treaty of Srirangapatnam in March 1792.
This treaty resulted in the surrender of nearly half of Mysore territory to the British. The British acquired Baramahal, Dindigul and Malabar while the Marathas got territory on the Tungabhadra side and the Nizam acquired territories from the Krishna to beyond the Pennar. Tipu also had to pay a war indemnity of over three crores of rupees.