After the death of Umar when Uthman became the Caliph, Abdullah b Masud addressed the citizens of Kufa in the mosque, and exhorted them to take the oath of allegiance to Uthman, as he was the best choice for the caliphate. In the second year of his caliphate, Uthman appointed Sa 'ad b Abi Waqas as the Governor of Kufa. Soon a quarrel arose between Sa'ad and Abdullah. Sa'ad took some loan from the Baitul Mal and failed to return it within the stipulated period. Abdullah b Masud insisted on the repayment of the loan. The dispute grew and culminated in the deposition of Sa'ad b Abi Waqas. After Sa'ad, Walid b Uqba was appointed as the Governor of Kufa. At one time Abdullah b Masud used to shepherd the goats of Uqba b Abi Moheet the father of Walid. To start with the relationship between Walid and Abdullah b Masud was very cordial, but later differences grew between the two.

When Abdullah b Masud came to know of Uthman's reform about the recension of the Holy Quran, Abdullah b Masud was critical of the exercise. He regarded himself as an authority on the Holy Quran, and he felt aggrieved that in the standard text his viewpoint had not been accommodated. He began to criticize Uthman. According to the accounts that have come down to us Abdullah b Masud levelled the accusation that some of the verses against the Bani Umayyads had been suppressed.

Walid b Uqba also took some loan from the Baitul Mall He failed to return the loan within the stipulated period and that became the subject-matter of dispute between Walid and Abdullah. Walid complained to Uthman, and Uthman is reported to have taken objection to his conduct against the Governor. Thereupon Abdullah b Masud resigned his office, and confined himself to his house where he freely criticized Uthman and his administration. Walid reported the matter to Uthman, and Uthman directed Walid to send Abdullah b Masud to Madinah.