thumb|upright|[[Government Museum (Shivappa Nayaka Palace), Shivamogga|Shivappa Nayaka's palace, Shivamogga, Karnataka]]
thumb|upright|Front view of the Shivappa Nayaka palace
thumb|upright|The famous [[Bekal Fort at Kasargod in Malabar, was built by Shivappa Nayaka]]
Shivappa Nayaka (, 1618 – 25 September 1660),
The growing threat of the Portuguese was eliminated by 1653 and the ports of Mangalore, Kundapura and Honnavar were brought under Keladi control. Having conquered the Kanara coast, he marched down to Kasargod region of modern Kerala and installed a pillar of victory at Neeleeswaram. The forts of Chandragiri, Bekal, Adka Fort, Arikady Fort and Mangalore were built by Shivappa Nayaka.
After securing the coastal regions, in 1654 he invaded north of the Tungabhadra river and captured territory in the modern Dharwad district from the Bijapur Sultanate. In 1659, he invaded the south and laid siege to Srirangapatna in modern Mysore district, however an epidemic broke out in his army forcing him to withdraw. In the south, he destroyed the Portuguese political power in the Kanara region by capturing all the Portuguese forts of the coastal region.
The kingdom of the Nayakas of Keladi reached its peak during the rule of Shivappa Nayaka, comprising the coastal, hill and some interior districts (Bayaluseeme) of modern Karnataka. According to this scheme, agricultural lands were divided into five types depending on the type of soil and available irrigational facilities. A unit of sowing capacity called Khanduga was developed and every irrigable land was taxed in varying amounts based on this unit. The rate of taxation depended on the yield in each one of these five types of land, the rate varying from village to village and amounting to a third of the total yield. Shivappa Nayaka gave importance to agriculture which resulted in an expanding agrarian economy.
Shivappa Nayaka died in 1663–64. His son and successor Soma Shekhar was murdered by his Brahmins and his grandson Basava was set up on the throne under the regency of his mother.