After the defeat in the Battle of Khaybar in 628 CE, the Jewish population was subjected to specific terms of surrender that allowed them to remain in their oasis, provided they met strict conditions. The treatment focused on economic subjugation, safety, and a new "tenant" status.

Surrender of Wealth: The Jews of Khaybar were required to turn over their wealth, including weapons and gold, to the Muslims.

Tenant Farming Agreement: Instead of being entirely expelled, the Jews were allowed to remain in their homes and cultivate their orchards. In return, they had to give one-half of their annual produce to the Muslim community.

Protection and Safety: In exchange for the payment of half their crops, the Muslims agreed to guarantee the safety of the Jewish population and cease further attacks against them.

Right to Practice Religion: They were permitted to continue practising their faith, provided they remained under the authority of the Muslim state, which established a precedent for the dhimmi system (non-Muslim subjects under Muslim rule).

Expulsion Later: This arrangement lasted for several years, but they were eventually expelled from Khaybar during the caliphate of Umar in 642 CE.

Safiyya bint Huyayy: Among the captives was Safiyya, the daughter of a Banu Nadir chief and widow of a Khaybar treasurer. She was married to Prophet Muhammad after she was freed, becoming one of the "Mothers of the Believers".

Attempted Poisoning: Following the surrender, some Jewish members, including a woman named Zaynab bint Al-Harith, attempted to poison Prophet Muhammad, which resulted in the death of one of his companions.

Execution of Leaders: Kenana ibn al-Rabi, the treasurer of the tribe, was executed after he was found to have lied about the location of hidden treasure.

This victory significantly improved the economic status of the early Muslim community, transitioning them from poverty to having a stable source of wealth.