Ghazan converted to Islam under influence of Nawrūz and made Islam the official state religion. Christian and Jewish subjects lost their equal status and had to pay the jizya protection tax. Ghazan gave Buddhists the starker choice of conversion or expulsion and ordered their temples to be destroyed; though he later relaxed this severity. After Nawrūz was deposed and killed in 1297, Ghazan made religious intolerance punishable and attempted to restore relations with non-Muslims.

Ghazan also pursued diplomatic contacts with Europe, continuing his predecessors' unsuccessful attempts at forming a Franco-Mongol alliance. A man of high culture, Ghazan spoke multiple languages, had many hobbies, and reformed many elements of the Ilkhanate, especially in the matter of standardizing currency and fiscal policy.