Meanwhile Dupleix was replaced by Godeheu as the French governor. The war came to an end by the Treaty of Pondicherry in 1754.

The outbreak of the Seven Years War (1756-1763) in Europe led to the Third Carnatic War (1758-1763).

Count de Lally was the commander of the French troops. The British General Sir Eyre Coote defeated him at Wandiwash in 1760. In the next year, Pondicherry was captured and destroyed by the British troops. The Seven Years War came to an end by the Treaty of Paris in1763. The Third Carnatic War also ended. The French agreed to confine its activities in Pondicherry, Karaikkal, Mahe and Yenam. Thus the Anglo-French rivalry came to a close with British success and French failure.

The causes for the French failure can be summed up as follows:

1. Commercial and naval superiority of the English.

2. Lack of support from the French government.

3. French had support only in the Deccan but the English had a strong base in Bengal.

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