By the time he returned to Afghanistan in 2002, his rule was characterized by a lengthy span of peace.
On 18 April 2002, at the age of 87 and four months after the end of Taliban rule, Zahir Shah returned to Afghanistan, flown in an Italian military plane, and welcomed at Kabul's airport by Hamid Karzai and other officials. His return was widely welcomed by Afghans, and he was liked by all ethnic groups. There were proposals for a return to the monarchy – Zahir Shah himself let it be known that he would accept whatever responsibility was given him by the Loya Jirga, which he initiated in June 2002. However he was obliged to publicly renounce monarchical leadership at the behest of the United States as many of the delegates to the Loya Jirga were prepared to vote for Zahir Shah and block the U.S.-backed Hamid Karzai. While he was prepared to become chief of state he made it known that it would not necessarily be as monarch: "I will accept the responsibility of head of state if that is what the Loya Jirga demands of me, but I have no intention to restore the monarchy. I do not care about the title of king. The people call me Baba and I prefer this title." Karzai called Zahir Shah a "symbol of unity, a very kind man" and a "fatherly figure."
Hamid Karzai, who was favored by Zahir Shah, became president of Afghanistan after the Loya Jirga. Karzai, from the Pashtun Popalzai clan, provided Zahir Shah's relatives with major jobs in the transitional government. Following the Loya Jirga he was given the title "Father of the Nation" by Karzai, symbolizing his role in Afghanistan's history as a symbol of national unity. This title ended with his death. In August 2002 he relocated back to his old palace after 29 years.