Resuming at overnight score of 337 for 8, the hosts folded up their innings after adding just three runs in nine minutes in the morning session.
Assam ran into trouble with Hyderabad speedster Vishnuvardhan and spinner Indrasekhar Reddy wrecking the guest batting line-up and bundling them out for 158.
Forcing a follow on, Reddy claimed the wickets of opener S Z Hussain (4) and Mrigen Talukdar (0) to leave the hosts struggling at 9 for 2 at stumps.
Replying to hosts first innings score of 340, Assam openers treaded a cautious path with Hyderabad fast bowlers showing no effective display.
Part-time spinner Daniel Manohar accounted for opener S Z Hussain (14) and the new spinner Indrasekhar Reddy struck immediately to send the second opener J J Lamare (14) back to pavilion thus beginning the slide of Assam.
Reddy and Vishnuvardhan struck at quick frequency and troubled the batsmen with their line and flight reducing the guests to 4 for 36 before middle order batsmen Gokul Sharma and Sukhvinder Singh made valiant efforts to stem the rot.
Sharma scored a patient 44 off 144 balls with five hits to the fence while Singh picked up 28 runs in 47 balls with five fours ending the Assam resistance.
The tail quickly folded up at 158 giving the hosts a thumping 182 run first innings lead.