Dilawar Khan had a slave called Hussain who boasted that if he were given a command, he would sack the Guru's city of Anandpur and exact tribute from Bhim Chand and other hilly Rajas. The failure of Khanzada provoked Dilawar Khan to plan for a bigger attack on the Guru. So he sent Hussain Khan with a force of two thousand men. Hussain brought the Raja of Dadhwal to his knees and plundered Dun. Raja Kirpal of Kangra joined him. Bhim Chand too cast his lot with Hussain. He then with the help of Kirpal and Bhim Chand, planned to proceed to Anandpur. The Guru kept his troops ready for any eminent attack. When Hussain was preparing to march towards Anandpur, Raja Gopal of Guler sent his envoy to make peace with him. Hussain replied that he would be glad to meet with Raja Gopal if he gave him a subsidy as other Rajas had done. Gopal went with some money but Hussain was not pleased with his contribution. Hussain's terms were payment of ten thousand rupees or he would put Gopal and his troops to death. Gopal pleaded his inability to pay that large sum of money and thus came back. At this point Gopal sent his envoy to the Guru to pray to him for a negotiated settlement with Hussain. The Guru sent his agent, Sangtia with an escort of seven troopers to negotiate a peace settlement between Gopal and Hussain. Two parties could not reach any settlement with the result that a battle ensued between Hussain, Kirpal and Bhim Chand on one side and Raja Gopal and Raja Ram Singh on the other. Having fought very bravely Hussain perished in the battle field. Raja Kirpal of Kangra was also slain. Himmat and Kimmat, two officers of Hussain Khan were also killed. On the other side the Guru's envoy Sangtia and his seven troopers were all killed. On seeing this Bhim Chand fled with his army. After his victory Raja Gopal went to the Guru with large offerings and thanked him for his grace which made him successful in the battle field. A third son, Zorawar Singh was born to the Guru on Sunday, the first day of the second half of the month of Magh, Sambat 1753 (1697 A.D.). The defeat irked Dilawar Khan and he then sent Jujhar Singh and Chandel Rai to Jaswan but they could not achieve the purpose. They, however, captured Bhalan, a strategic place in that state. Before they could proceed further, Gaj Singh of Jaswal fell upon them. Jujhar Singh and Chandel Rai both fought like lions but Jujhar Singh as killed and Chandel Rai fled from the field. The defeat of the imperial forces caused anxiety to Aurangzeb and he sent his son Prince Muazzam, later known as Bahadur Shah, for restoration of order in the hills. The Prince took charge in August, 1696 and deputed Mirza Beg to teach lesson to hill Rajas. He inflicted defeat after defeat, set up villages on fire, plundered the territory. After Mirza Beg, the Prince sent four more officers who, side by side, chastised the hill Rajas, plundered the homes of the apostates who had escaped destruction at the hands of Mirza Beg. In due time a fourth son, Fateh Singh was born to the Guru on wednesday, the eleventh day of Phagan, Sambat 755 (1699 A.D.). In the state of seclusion and tranquility of the mountains, the Guru translated Sanskrit works in Sambat 1755 ( 1698 A.D.). It was on the 14th of June of that year that the Guru according to his own version, completed his translation of the Ram Avtar from Sanskrit into Hindi. Most of the compositions that are said to be of the tenth Guru, are not his. Macauliffe writes: "What is called the Granth of the tenth Guru (Dasam Granth) is only partially his composition. The greater portion of it was written by bards in his employ. The two works entitled Chandi Charitar and the Bhagauti ki Var found in it are abridged translations by different hands (any one even moderately acquainted with Hindi can tell from inner evidence of style that these translations have been done by different persons) of the Durga Sapt Shatti, or seven hundred sloks on the subject of Durga, an episode in the 'Markandeya Puran' on the contests of the goddess Durga with demons who had made war on the gods." There were fifty-two bards in the court of Guru Gobind Singh to translate the Mahabharat, the Ramayan, and the gallant achievements of Rama, Krishna, Chandi, and others. It does not follow from this that the Guru worshipped those whose acts were thus celebrated; this was only done for the purpose of inciting bravery and dispelling cowardice, and filling the hearts of his troops with valor to defend their faith. This the Guru himself declares in his translation of the tenth canto of the Bhagwat," I have rendered in the vulgar dialect the tenth chapter of the Bhagwat with no other object than to inspire ardour for religious warfare."

The Guru never put faith or worshipped anyone other than the One Immortal God. In Akal Ustat he writes:

"Without Thee (God) I worship none Whatever boon I want, get from Thee."

The Guru makes the above point clear in his thirty-three Swayas:

"Some fasten an idol firmly to their breasts; some say that Shiv is God; Some say that God is in the temple of the Hindus; others believe that He is in the mosque of the Musalmans; Some say that Rama is God; some say Krishna; some in their hearts accept the incarnations as God; But I have forgotten all vain religion and know in my heart that the Creator is the only God." (Swaya- XII)