Born in Pind Malikan (now Mahfuzabad, Rawalpindi district) on October 25, 1944, Muhammad Mahfuz joined the army on October 25, 1962. When war broke out in 1971, Lance Naik Mahfuz was serving in 'A' Company of 15 Punjab Regiment deployed on the Waggah-Attari sector. On the night of December 17-18, his company was assigned the task of occupying Phul Kanjri village located in the sector. Platoon No. 3, to which Lance Naik Mahfuz belonged, was the forward unit in the assault and had to face torrential volleys of enemy fire from concrete pillboxes. When the company was about 70 yards from the Indian position, it was pinned down by unceasing frontal .and cross fire from automatic weapons of the enemy

With the break of dawn, the enemy artillery also opened up. Fighting like a man possessed, Mahfuz, whose machine-gun was destroyed by an enemy shell, took over a light machine-gun from a gunner who had already fallen and advanced towards an enemy bunker from which automatic fire had inflicted heavy casualties on his company. Wounded in the legs by shell splinters, he continued to fire, dragging himself forward. At the bunker he got up with almost superhuman effort and bounced on the enemy and was hit at point-blank range. His weapon dropped from his hand, but, despite being unarmed and mortally wounded , he caught hold of an Indian soldier and began to strangle him when another Indian bayoneted him to death. Nishan-e-Haider was awarded to Lance Naik Muhammad Mahfuz Shaheed on the courage and tenacity displayed by him which was admitted by the enemy Commander.