He succeeded his father when he died on 17 June 1886. He visited England in 1887 to attend the celebrations of Victoria'sGolden Jubilee, and was made Knight Grand Commander of the Order of the Star of India on 20 June 1887.
His administration was poor. The resident had been separately removed from Indore since 1854, but since 1899 the British appointed a new resident specific for better oversight of the state. The currency of the state was replaced in 1902 by the currency of British India.
He abdicated on 31 January 1903 in favour of his son Tukojirao Holkar III, (born in 1890) .
A silver rupee of Shivajirao Holkar 1886-1903, minted at Indore in Vikram Samvat 1948 (1891)
In 1865 he married Maharani Shrimant Akhand Soubhagyavati Girja Bai Sahib Holkar, later Maharani Shrimant Akhand Soubhagyavati Varanasi Bai Sahib Holkar, Shrimant Maharani Sahib Akhand Soubhagyavati Chandrabhaga Bai Holkar, Maharani Sita Bai Soubhagyavati Shrimant Akhand Sahib Holkar.
He died at Maheshwar on 13 October 1908. He had two sons and six daughters.
