To another temple, Nanjundeswara, in the same town of Nanjungud, he gave a greenish linga; to Ranganatha temple at Seringapatam he gifted seven silver cups and a silver camphor burner. This temple was hardly a stone's throw from his palace from where he would listen with equal respect to the ringing of temple bells and the muezzin's call from the mosque.

There is such evidence as grant deeds, and correspondence between his court and temples, and his having donated jewellery and deeded land grants to several temples, which some claim he was compelled to do in order to make alliances with Hindu rulers. Between 1782 and 1799 Tipu Sultan issued 34sanads (deeds) of endowment to temples in his domain, while also presenting many of them with gifts of silver and gold plate. The Srikanteswara Temple in Nanjangud still possesses a jewelled cup presented by the Sultan.

In light of this and other events, B.A. Saletare has described Tipu Sultan as a defender of the Hindu dharma, who also patronized other temples including one at Melkote, for which he issued a Kannada decree that the Shrivaishnava invocatory verses there should be recited in the traditional form. The temple at Melkote still has gold and silver vessels with inscriptions indicating that they were presented by the Sultan. Tipu Sultan also presented four silver cups to the Lakshmikanta Temple at Kalale. Tipu Sultan does seem to have repossessed unauthorised grants of land made to Brahmins and temples, but those which had proper sanads were not. It was a normal practice for any ruler, Muslim or Hindu, on his accession or on the conquest of new territory.

It should be noted, however, that these letters were written in the context of his precarious situation after the battles of the Third Mysore War, during which he suffered many setbacks, including having to deliver his two sons as captives to the British. It is possible that his letters to the Shankaracharya were therefore a result of his desire to gain support of his Hindu subjects.

He immediately ordered the Asaf of Bednur to supply the Swami with 200 rahatis (fanams) in cash and other gifts and articles. Tipu Sultan's interest in the Sringeri temple continued for many years, and he was still writing to the Swami in the 1790s CE.

In 1791, some Maratha horsemen under Raghunath Rao Patwardhan raided the temple and monastery of Sringeri Shankaracharya, killing and wounding many, and plundering the monastery of all its valuable possessions. The incumbent Shankaracharya petitioned Tipu Sultan for help. A bunch of about 30 letters written in Kannada, which were exchanged between Tipu Sultan's court and the Sringeri Shankaracharya were discovered in 1916 by the Director of Archaeology in Mysore. Tipu Sultan expressed his indignation and grief at the news of the raid, and wrote:

People who have sinned against such a holy place are sure to suffer the consequences of their misdeeds at no distant date in this Kali age in accordance with the verse: "Hasadbhih kriyate karma ruladbhir-anubhuyate" (People do [evil] deeds smilingly but suffer the consequences crying). 

Tipu Sultan's treasurer was Krishna Rao, Shamaiya Iyengar was his Minister of Post and Police, his brother Ranga Iyengar was also an officer, and Purnaiya held the very important post of "Mir Asaf". Moolchand and Sujan Rai were his chief agents at the Mughal court, and his chief "Peshkar", Suba Rao, was also a Hindu.

Furthermore, he brought into place the use of Islamic terms, such as khata, sanad, the use of 'bin' to denote 'son of' into administration; and these terms have been in use ever since. Tipu is also known to have attempted to assign Islamic names to several places - for example, Yousufabad for Devanahalli, Nasarabad for Mysore, Farukhyab Hisar for Chitradurga, Faiz Hisar for Gutti and so on.

Tipu strengthened and instituted education in Persian and Urdu among Muslims in the Mysore region. To this day, unlike Muslims in Kerala and Tamil Nadu, Muslims in southern Karnataka use Urdu.

Tipu sent a letter on January 19, 1790 to Budruz Zuman Khan. It says:

Don't you know I have achieved a great victory recently in Malabar and over four lakh Hindus were converted to Islam? I am determined to march against that cursed Raman Nair very soon. Since I am overjoyed at the prospect of converting him and his subjects to Islam, I have happily abandoned the idea of going back to Srirangapatanam now.