In 1988, waiting to complete Zooni (one of his major films), shot both in English and Hindi, he set up a studio in Delhi and began painting a series of collages that were reminiscent of the valley. These were exhibited in 1990 in Carma, New Delhi along with craft he had designed in his studio in Kashmir.

His works of art, collages, craft design and fashion were exhibited in May 1991 at the Gallery La Fayatte in Paris as part of the Festival of India.

After creating an international impact with his work, in 1991 Muzaffar Ali turned back to his roots in Kotwara and Lucknow, where most of his films were shot. He came back with a different motivation. This time it was not only film but to realize in life what most of his films were all about, to return the inspiration of the people in the form of development and livelihood .

Based on the inspiration and message of his first film Gaman migration from rural to urban centres, Muzaffar Ali began a movement Dwar Pe Rozi to provide employment at doorstep through craft with a special emphasis on silk plantation of mulberry, rearing of worms, reeling and weaving , embroidery and styling. DPR as a registered society also runs a charitable school in Kotwara for the children of that area with an emphasis on rural employment.

Furthermore, his interest in craft and clothes, through his mother and the way he used them in Umrao Jaan, Anjuman and Zooni, motivated him to design clothes with the help of his architect wife Meera. The collection is known all over the country and the world as Kotwara which evokes a bygone era known for its finesse in style and craftsmanship. Acceptance of his work in a contemporary setting gives him strength to perpetuate this movement.

Jashn e Awadh was Muzaffar Ali‘s tribute to Awadh’s unique traditional attire, cuisine, tehzeeb- the Ganga Jammuni culture of Awadh for Taj Mahal Group of Hotels. This slide and live show with the music and poetry of Awadh was held at Taj Mahal Hotels at Lucknow, Mumbai and Delhi between October to November 96.

Muzaffar Ali is actively involved in the promotion and conservation of the culture and craft of Awadh, individually as an artist and as active member of INTACH of which he was also member of the Governing Council.

Besides keeping the embers of Zooni alive, he is working on several ideas that make his journey and quest, while his search is on for a powerful emotion that will become a feature film, as a natural extension of Umrao Jaan. He keeps his sensibility alive through sketching, making collages, exploring music of the soul, and evolving clothes that bring out an inner grace. In light of love and beauty inherent in the art of the Sufis he receives inspiration for his creative spirit. And thus prepares him for a feature film which he considers the ultimate of all art forms. Daaman, Begum, are being distilled and researched to become his forthcoming statement for the big screen…

On 12th February 2000 he concluded his ninth one-man show of sketches and collages at Art Today. This was followed by Jaam e Ishq, a dance ballet as an inaugural event for the World Presidents Organization. He is presently working on an exhibition of Quranic calligraphy collages and sketches for the Middle East in September 2000 as part of the 50th anniversary of our Republic.