The party created a sensation by winning one third of Mandal Parishad Territorial Constituencies (MPTC) and one quarter of Zilla Parishad Territorial Constituencies (ZPTC) in the Telangana region within sixty days of its formation.
In the 2004 Assembly elections, the TRS formed an alliance with the Congress (I) and won 26 state Assembly seats. The party also won 5 Lok Sabha seats. It joined the Governments at both state and Central level.
In September 2006, the party withdrew its support to the UPA Government, accusing the Congress of betraying the people of Telangana over the delivery of its electoral promise to create Telangana, which was also put in the Common Minimum Program (CMP).
In January, 2008, the party set a March 6 deadline for the UPA to begin the process of carving out a separate Telangana.
On March 3, four TRS MPs — K Chandrasekhara Rao (Karimnagar), B Vinod Kumar (Hanamkonda, Warangal district), Ravindra Naik (Warangal) and T Madhusudhan Reddy (Adilabad) — resigned from the Lok Sabha.