The Skirmish on Nalyd was a brief skirmish that occurred during Darth Wredd's insurgency against both the One Sith and the Galactic Federation Triumvirate. After receiving a vision that the rogue Sith Darth Wredd intended to kill the Galactic Empress Marasiah Fel, the Imperial Knight Jao Assam and the junk dealer Ania Solo embarked on a quest to hunt down Wredd. They discovered clues which led them to Nalyd, the homeworld of Wredd's henchman Dieben, who was facing execution for various crimes. In an attempt to question him about Wredd's whereabouts, Jao and Ania kidnapped him from the arena where he was to be executed. During the escape attempt, Dieben was killed without revealing any information about Wredd. However, Jao and Ania later learnt from the Nalydian authorities that Dieben had powerful friends in the Calamari system. Jao and Ania subsequently traveled to Dac where they discovered that another rogue Sith named Darth Luft and his pirate associates were using enslaved Mon Calamari and Quarren refugees to build a pirate fleet.
After receiving a vision of the rogue Sith Darth Wredd attacking the Galactic Empress Marasiah Fel, the Imperial Knight Jao Assam abandoned his post and embarked on a quest to hunt down Darth Wredd. He was accompanied by the junk dealer Ania Solo, whom he had encountered during the Carreras Incident. While viewing through incident reports and criminal files aboard a commandeered shuttle, Ania came across a file on Dieben, Wredd's one–time Nalydian henchman whom she encountered at Wredd's base on the floating planet of Mala. Jao and Ania quickly learnt that Dieben's escape pod had been picked up by law enforcement authorities. Since he was wanted for numerous crimes on his homeworld of Nalyd, Dieben had been extradited to Nalyd, which was a planet that was covered in a swirling orange fog.
Upon landing on Nalyd, Jao and Ania quickly discovered that Dieben had been sentenced to death by the local authorities for various crimes including assassinating a Minister, assaulting an officer of the law, and sabotaging a public transport which resulted in ten fatalities. As punishment, Dieben was to be executed by firing squad in a public arena. Ania and Jao attempted to obtain a stay on the execution until they could question Dieben. When that failed, Ania commandeered a spider–like creature and "rescued" Dieben moments before the soldiers could open fire on him. She then fled the arena on the spider steed and raced down a steep cliff. Ania was pursued by the Nalydian authorities who opened fire on her.
Dieben did not respond well to being rescued and struggled with Ania. Meanwhile, Jao managed to grab hold of the tendril of a jellyfish–like creature and followed Ania. The Nalydian authorities quickly caught up with Ania and opened fired on her spider steed, wounding the creature and causing Ania and Dieben to fall into mid-air. However, they were rescued by Jao and his jellyfish steed. Jao reprimanded Ania for her recklessness. However, Dieben then bit Ania, causing all three of them to lose grip of the jellyfish creature and fall down into a swamp. Jao and Ania were fortunate to land in a muddy estuary but Dieben was impaled by a spiky plant, leading to injuries which resulted in his death.
Prior to Dieben's death, Ania attempted to question him about whether he had been planning to rendezvous with Darth Wredd before the Imperial authorities had captured him. However, Dieben refused to divulge any information. Jao and Ania were then cornered by the Nalydian authorities. The first rider they encountered commended them for "doing their job for them" while the second commented that Jao and Ania would not be taking Dieben back to Dac now. The Nalydian authorities attempted to apprehend Jao and Ania for interfering with their legal process. However, Ania managed to defuse the situation by pointing out that Jao was an Imperial Knight and skilled in the arts of lightsaber combat. She convinced them that it was more expedient for them to come to an arrangement. In the end, Jao and Ania agreed to return Dieben's body in return for receiving information that Dieben had planned to rendezvous with some "powerful friends" in the lawless Calamari system.
In the end, Jao and Ania's mission to Nalyd succeeded in procuring information on what appeared to be Darth Wredd's whereabouts. However, the rogue Sith had intentionally planted a false clue in order to lead Jao and Ania to the Calamari system. There, another rogue Sith named Darth Luft and his pirate associates had taken control of the Mon Calamari Orbital Shipyards and were using enslaved Mon Calamari and Quarren refugees to build a pirate fleet. Jao and Ania succeeded in killing Darth Luft and drawing the Galactic Federation Triumvirate's attention to the lawless system. The Triumvirate authorities liberated the slaves and apprehended the pirates. However, Jao later leant that Darth Wredd had intended for him to kill Darth Luft in order to fulfill his plan to destroy the One Sith and re-institute the Rule of Two.