He was born on 25 October 1944 in Pind Malakan (now Mahfuzabad), district Rawalpindi. He was enrolled in Army on 25 October 1962. After training he joined, 15th Punjab Regiment. During 1971 war, unit was deployed in Wagha-Attari Sector where Lance Naik Muhammad Mahfuz participated in famous Pul Kunjry operation and captured the area. During the battle his machine gun was destroyed by but Muhammad Mahfuz advanced towards an enemy bunker and jumped inside. He got hold of an enemy soldier with his neck and killed him. He was stabbed with bayonets and embraced martyrdom on the night of 17 December 1971. Next morning cease fire was ordered and enemy commander himself praised him a lot while handing over his dead body rapped in Pakistani flag.