These events led to the British attaining victory against Panniar and Mahaarajpur in the year 1844. This filled the state with mutinous soldier, diminished the finances and deteriorated authority. With sheer conviction and determination, the Dewan restrained disorder, executed public works, abolished damaging imports and turned the financial deficit into a surplus through reduction of salaries, even his own. Dinkar Rao remained loyal to the British even during the era of the great revolt of 1857 and the uprising of Indian rebellion. Even when the state troops initiated mutiny on June 1858 upon the emergence of Tantia Tope, Sir Dinkar Rao KCSI held on to the cause of the British East India Company. He retired to the Agra fort with Maharaja Sindhia.
After the restoration, Dinkar Rao remained as the Minister until December 1859. As the Rana of Dholpur was still a minor, he was appointed as his guardian in the year 1873. But due to poor health, Sir Dinkar Rao resigned soon afterward. He was selected as a Commissioner by the Viceroy of India in 1875, along with the Maharajas of Jaipur and Sindhia and 3 British colleagues. It was done to legally try the Gaekwar or Gaekwad of Baroda on a charge of trying to poison the British Resident. Sir Dinkar Rao, KCSI was one of the first first non-British members of the Legislative Council of India who was appointed in the year 1861 vide the Indian Councils Act. Rao was conferred with an estate, with the hereditary title of Raja for his distinguished and reputed services. He was also decorated with Knight Commander of the Order of the Star of India (KCSI).
Sir Dinkar Rao KCSI died on 9th January, 1896. He gained a very high reputation even though he started studying the English language when he was almost 40 years of age.