In 947, a successful Liao attack captured Later Jin's capital
Daliang. Liao's
Emperor Taizong attempted to rule the former Later Jin territory as well as its emperor, but soon faced much resistance against his rule. One of the main resistors was Liu Zhiyuan, who declared himself emperor at Hedong Circuit (河東, headquartered in modern
Taiyuan,
Shanxi) (of a state that would be later known as
Later Han, and he would eventually take over control of the former Later Jin territory after the Liao forces withdrew. Murong Yanchao, hearing this, escaped from his place of exile at Fang, and Liu made him the military governor of Zhenning Circuit (鎮寧, headquartered in modern Puyang). and his son
Liu Chengyou was emperor, Murong was given the greater honorary chancellor designation of
Shizhong (). In spring 950, when a number of military governors went to Daliang to pay homage to the emperor on for the emperor's birthday (at the urging of the high-level officials at the imperial government, who were planning to move them), Murong was one of the ones who did. He was subsequently moved from Tianping to Taining Circuit (泰寧, headquartered in modern
Jining,
Shandong). By winter 950, Liu Chengyou had tired of the hold that the high-level officials had on his administration, and viewed them as obstacles to his actually exercising imperial power. Plotting with his close associates Nie Wenjin (), Hou Kuangzan (), and Guo Yunming (), he surprised and killed the chief of staff Yang Bin, the commander of the imperial guards
Shi Hongzhao, and the director of the financial agencies
Wang Zhang. Yang's co-chief of staff,
Guo Wei, was at Yedu at that time (to defend against a possible Liao incursion) and was not at Daliang, and therefore escaped this fate, but his family was slaughtered. After this imperial coup, Liu sent edicts to a number of military governors, summoning them to Daliang. It appeared that most of them decided to wait to observe what would happen next, but Murong decided to go to Daliang all at once — leaving immediately even though he happened to be eating at the time he received the edict. When he arrived at Daliang, Liu entrusted the command of the imperial troops to him. Hearing of his family's death, Guo mobilized his troops and headed south toward Daliang. Hou Yi () advocated not engaging Guo's troops, as Guo's soldiers' family members were all at Daliang, and he believed that once the immediate impulse were lost, Guo's troops would submit to imperial authority. Murong, however, responded, "Hou Yi is old and acting like a coward." Liu listened to Murong, and thereafter sent Hou with other generals Wu Qianyu () and Zhang Yanchao () north to engage Guo's troops first, while Murong and Liu himself prepared to engage Guo afterwards. Murong, initially confident of success, stated, "I, your subject, view the northern army as insects. I will surely capture their leader alive for you, Your Imperial Majesty!" However, after he subsequently was informed by Nie of the size of Guo's army and the officers serving under Guo, he became apprehensive, stating to Nie, "This is a serious enemy. I should not take him lightly." On December 31, Guo's army and the imperial army encountered at Liuzi Slope (). Liu Chengyou wanted to personally go out to encourage the troops. Liu Zhiyuan's wife and Liu Chengyou's mother
Empress Dowager Li stated to him, "Guo Wei is our family's old servant. How would he be doing this if it were not a matter of life or death? You should keep the troops in the city and send a messenger with your edict, to observe his intentions. He would surely respond, and you can still maintain the formality of emperor and subject. Do not go out yourself." The young emperor refused her advice. The armies, however, did not actually engage in battle that day, and Liu Chengyou returned to the palace. Murong bragged to him, "These days, Your Imperial Majesty has little to do in the palace. Tomorrow, come watch your subject destroy the bandits. I need not actually battle with them. I will just rebuke them, and they will surely collapse and return to their own barracks [(i.e., abandon Guo and return to Kaifeng)]!" On January 1, 951, the young emperor again wanted to go encourage the army, and he did so against Empress Dowager Li's advice. The armies met each other again on the front line, and Guo Wei ordered his army not to engage first, stating, "I am here to kill the scoundrels, not to oppose the Son of Heaven. Do not move first." However, after the armies hesitated for some time, Murong led the cavalry in a charge, starting the battle. Guo Wei had Guo Chongwei and
Li Rong resist Murong's charge. During the battle, Zhang's horse fell, and he was nearly captured by Guo Wei's army. He was able to withdraw, but more than 100 of his soldiers died, causing a loss of morale in the imperial army, such that the imperial army soldiers began to surrender to Guo's. Even the generals, including Hou, Wu, Zhang, Yuan, and Liu Chongjin, all secretly went to see Guo to offer to surrender, but he sent them all back to their camps. As the sun was setting, more and more of the imperial army was surrendering to Guo's. Murong abandoned the imperial army and fled back to Taining's capital Yan Prefecture () with only a handful of his guards. The next day, Liu Chengyou was killed by Guo's soldiers in the confusion. Guo subsequently entered the capital and effectively controlled it, although at that time still outwardly acting like a Later Han subject. Liu Chengyou's associates were ordered to be executed. When Hou Kuangzan fled to Taining, Murong, apparently to make peace with Guo, arrested Hou and delivered him back to Daliang. == During Later Zhou ==