Sparta was getting seriously short of funds, and so, even though he was now over 80, Agesilaus hired himself out as a military commander to Tachos of Egypt, who was rebelling against Artaxerxes of Persia (361). Agesilaus was expecting to be put in command of the whole army, but in fact he was only put in charge of the mercenaries. Tachos' cousin, Nectanebis was planning a coup against Tachos. Both sides sent delegations to Sparta asking for help, but the Spartans left the question of which to support to discretion of Agesilaus as the man on the spot. He duly switched sides and joined Nectanebis. Tachos fled and took refuge with Artaxerxes.
However, Necatanebis' hold over Egypt was not secure, and another claimant for the throne rose up in Mendes. The Mendesian made approaches to Agesilaus with the result that Nectanebis grew suspicious. Agesilaus stayed with Nectanebis and after being besieged by the enemy, he defeated them. Agesilaus decided that his work in Egypt was finished and wanted to return to Sparta. He died on the way home at the age of 83 (359), and his body was transported back to Sparta embalmed in wax. He was succeeded as king by his son, Archidamus.
When the news reached Sparta, the relatives of the fallen were full of pride while the relatives of the survivors behaved as if they were in mourning. The survivors were in grave danger of being declared cowards and subject to various legal and social penalties. However, Agesilaus declared that the laws should be suspended for one day so that the survivors would not have to stand trial. Morale in Sparta was very low and many remembered the oracle about the lame king. However, Agesilaus was still popular and the Spartans continued to trust him as a leader in war and in international relations. To help restore confidence, Agesilaus led an expedition into Arcadia, where the Spartans captured a small town (370).
In the winter of 370-369, however, Epaminondas led an invasion of Spartan territory reaching the outskirts of Sparta itself. The Thebans were unable to dislodge Agesilaus from his defensive position in the centre of the city and proceeded to lay waste the countryside. Within Sparta itself there was an attempted coup, and the insurgents took control of a easily defensible spot called the Issorium. Agesilaus persuaded the majority of those involved to disband and take up positions elsewhere. Then he arrested the ringleaders and put them to death.
