Jipang's area of power at that time included Bojonegoro, Pati, Lasem Rembang, and Blora. When the troops sent by Jaka Tingkir (Hadiwijaya) succeeded in seizing the throne of the Demak Sultanate and killed Arya Panangsang, the sovereignty of the Demak Sultanate was lost and the Pajang Kingdom was established. There is a version that believes that Arya Panangsang was buried in Jipang, while others believe that his grave is in Kadilangu, Demak.

Arya Panangsang was the son of Prince Sekar Seda Lepen, the younger brother of Sultan Demak II, Prince Pati Unus (Patih Yunus). Prince Sekar was also the second son of Raden Patah, the first king and founder of the Demak Kingdom. Pati Unus was only a king in Demak for a short time, because he died while leading troops trying to expel a Portuguese army that controlled Malacca. Prince Sekar Seda Lepen (Raden Kikin), the second younger brother of Pati Unus also died, after being killed by someone sent by Raden Mukmin (Sunan Prawata). Then, the position of Sultan of Demak was taken over by Sultan Trenggana, the third son of Raden Patah. The son of Prince Sekar Seda Lepen, who was still a baby at that time, was cared for by Sunan Kudus and named Arya Panangsang. This is because when he was found he was caught in plants on the riverbank. After growing up, Arya Panangsang became the Duke of Jipang and fought for power over the former Demak Kingdom with the King of Pajang Sultan Hadiwijaya alias Jaka Tingkir who moved the center of the Demak Kingdom to Pajang. Jaka Tingkir or Mas Karebet or Sultan Hadiwijaya was the son-in-law of Sultan Trenggana. The tomb of Arya Panangsang is in Demak.

Arya Panangsang was indeed the favorite student of his teacher, Sunan Kudus. When Arya Panangsang was hostile to Sunan Prawata, as a result of the succession of the Demak Sultanate government that did not run smoothly, Sunan Kudus supported his student persistently. This hostility with the successor of Sultan Trenggana occurred because Prince Prawata, who was initially a student of Sunan Kudus, then acknowledged Sunan Kalijaga as his teacher. It is said that Sunan Kudus gave power to his most beloved student, Arya Panangsang in Jipang, to kill Sunan Prawata, because it was considered a sin to have two teachers at once. According to Babad Tanah Jawi, Sunan Kudus had three students, namely Arya Panangsang, Sunan Prawata, and Sultan Pajang. Furthermore, Babad Tanah Jawi recounts the conversation between Sunan Kudus and Arya Panangsang as follows:

Soenan Koedoes ngandika dhateng arya Panangsang: "What is the meaning of what people do?" Arya Djipang matoer alon: “Oekoemipoen pinedjahan. Sarehning koela dereng soemerep, sinten ingkang gadah lampah mekaten poenika.” Soenan Koedoes ngandika: “Kakangmoe ing Prawata.” (Olthof, t.t.: 46).

Sunan Kudus asked Arya Panangsang, what is the law for someone who has two teachers at once. Arya Panangsang answered quietly, the law is death. However, he admitted that he did not know who had done so. Then, Sunan Kudus answered again, your brother Prawata.

According to another story, Sunan Kudus actually once wanted to reconcile the conflict between Arya Panangsang from Jipang and Jaka Tingkir (Sultan Hadiwijaya) who would later become Sultan of Pajang. It is said, Sunan Kudus summoned Arya Panangsang and Sultan Pajang. Then, his two students who were fighting to come to Kudus. They met Sunan Kudus at the pasowan. Although, mediation had been attempted by Sunan Kudus, the conflict could not be avoided again.