He was obliged to negotiate the borders of his state with Abu Sa'id Mirza and after negotiations Jahan Shah decided to return territorial demarcation to Shahrukh Mirza's times (Jahan Shah keeping Iraq-i-Ajam while Abu Sa'id keeping Khurasan).
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He sent two detachments; one to take possession of Iraq-i-Ajam, the other of Fars.
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Abu Sa'id Mirza advanced into Azerbaijan of Iraq-i-Ajam with a powerful army subduing the country in his course.
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February 4 – Battle of Qarabagh in Arran (Caucasus): The Aq Qoyunlu under Uzun Hassan defeat the Timurids of Samarkand under Abu Sa'id Mirza resulting in the latter's capture and execution (by Yadgar Muhammad Mirza) and abandonment of Timurid claims on Persia.