During the reign of Fasiledes (1632-1667), Gondar was established as the permanent capital of the Christian highland kingdom around 1636. The city, featuring grand castles and palaces, adopted architectural styles from the Aksumite and Zagwe periods. Gondar became a hub for education, arts, and trade, with its markets thriving on local and regional trade. Gondar’s trade, initially dominated by Muslim and Falasha (Bete-Israel) artisans, expanded with daily markets where diverse products were exchanged. Communities such as Muslims, Bete-Israel, and expatriates lived in segregated quarters outside the city, leading to a population of about 70,000 by the late 18th century. Despite its prosperity, Gondar faced regionalism and the increasing autonomy of local lords.

Gondar thrived under its first three kings: Fasiledes, Yohannis I, and Iyasu I (1682-1706). Iyasu I, the most powerful, conducted successful military campaigns, implemented reforms, and strengthened trade relations with Egypt. His later actions, including inviting foreign physicians and missionaries, led to opposition and his eventual assassination, succeeded by his son Tekle Haymanot. Post-Iyasu I, Gondar experienced political instability with frequent assassinations of kings until Bekaffa (1721-1730) began his reign, marking a brief period of stability. During Bekaffa’s reign, Shewa began developing autonomously.

Iyasu II (1730-1755), succeeded by his mother Etege Mintiwab, was supported by her Quaregnoch political elite. Mintiwab’s strategic marriages and integration of Oromos significantly influenced the kingdom, though conflicts between Quaregnoch and other factions arose.  Iyo’as (1755-1769), Iyasu II’s son, saw increased Oromo influence and relied on Oromo allies. This led to more political tension and competition. Mintiwab’s efforts, including her support for clergy and construction of churches, ultimately set the stage for Ras Michael Sehul to seize power in 1768. He replaced Iyo’as with Yohannis II in 1769, initiating the Zemene Mesafint (Era of the Warlords).