The Battle of Asylum, a significant event, unfolded in 3631 BBY. This confrontation occurred after Arcann, the Emperor of the Eternal Empire, learned about the Outlander's presence at the shadowport of Asylum. Heskal, the leader of the Scion, informed Arcann. In response, Arcann arrived at Asylum with the Eternal Fleet and initiated an attack. Arcann eliminated Heskal and the other Scions before engaging the Outlander in a duel within their hideout. The duel was interrupted by a shuttle crash, which allowed the Outlander to escape. Arcann's forces then seized the docking clamps securing the Gravestone. Consequently, the Outlander, accompanied by Koth Vortena and HK-55, had to fight their way to the Control Spar to deactivate the clamps. Simultaneously, Senya Tirall confronted her daughter Vaylin aboard the Gravestone. After the Outlander disabled the docking clamps, Arcann attacked again, destroying HK-55 in what appeared to be an irreparable manner. Despite enduring considerable physical strain during the conflict, the Outlander survived and escaped the encounter with Arcann, returning to the Gravestone just as it was departing. As it fled, the vessel used turbolaser fire to destroy an Eternal Fleet warship, before jumping into hyperspace. Meanwhile, Eternal Empire forces continued to devastate Asylum without opposition.
Following the Eternal Empire conquest, which led to the downfall of both the Galactic Republic and the Sith Empire, the shadowport of Asylum, located in Wild Space, became a refuge. It sheltered those fleeing the oppressive rule of the Eternal Empire on Zakuul. Among these refugees were Heskal and the Scions of Zakuul, who were escaping the Scion massacre ordered by Arcann, the Eternal Emperor. After the Outlander's rescue from Zakuul in 3631 BBY, Koth Vortena, a former Zakuulan officer, along with his allies—Lana Beniko, a Sith Lord; Senya Tirall, a renegade Knight of Zakuul; and HK-55, a bodyguard droid—escaped Zakuul aboard the Gravestone. This ancient combat frigate had proven capable of fighting the Eternal Fleet, and docked at Asylum for necessary repairs.
While at Asylum, they recruited Vortena's crew members, including Len Parvek, Ralo, and Tora, to restore the ship to operational status. During the ship's repair, the Outlander and Senya Tirall ventured to Zakuul, returning with T7-O1, Beniko's astromech droid, and SCORPIO, an advanced artificial intelligence. Meanwhile, Heskal, foreseeing Arcann's defeat by the Outlander in a vision, contacted the Emperor he despised and invited him to Asylum, acting in accordance with his prophetic insight.
Arcann traveled to Asylum ahead of his Eternal Fleet and personally executed the Scions within their hideout. He impaled Heskal with his lightsaber just as the Outlander arrived for their meeting. Arcann then offered the Outlander a peaceful return to carbonite and the surrender of the Gravestone, promising freedom for their crew. However, Valkorion cautioned the Outlander that Arcann would betray them, leading to a confrontation between the two. The Eternal Fleet then emerged from hyperspace and began firing on the shadowport, while shuttles deployed Skytroopers and Knights of Zakuul. Civilian ships carrying refugees attempted to escape, but many were shot down by the Eternal Fleet. Local criminal elements, including Tanno Vik's Blast Crew, joined the fight against the invaders.
While the Gravestone remained docked, SCORPIO enhanced its targeting systems, using the turbolaser to destroy several shuttles. One of these crashed into the Scions' hideout, disrupting Arcann's battle with the Outlander. The Outlander and T7-O1 hurried back to the Gravestone, encountering and defeating Dasch Nilrann, a Knight-Captain, before witnessing Heskal succumb to his injuries. Arcann's forces seized the Control Spar, gaining control over blast doors, turbolifts, and docking clamps, effectively grounding the Gravestone. Koth Vortena and HK-55 proceeded to the Control Spar, while the rest of the crew defended the Gravestone.
Their position was threatened by a group of Knights led by Vaylin, the High Justice, who nearly pushed Vortena's crew members off the platform. Just as Vaylin was about to attack the Outlander and Lana Beniko, Senya Tirall, her mother, intervened. Senya eliminated a Zakuulan Knight targeting Koth's crew before using telekinesis to throw the Outlander away from Vaylin's attack. Senya then urged Beniko to follow the Outlander and free the Gravestone, while she stayed to confront her daughter, leading to a lightsaber duel. The Outlander and Beniko soon reached Vortena's position, where Beniko volunteered to defend a choke point, allowing Vortena and the Outlander to reach the Control Spar.
Vortena and the Outlander destroyed an Eternal Empire Walker before boarding a shuttle piloted by Vortena to the Control Spar, where they reunited with HK-55. After eliminating Lazna Delothrea, a Knight-Captain, Vortena and the droid remained behind to hold off a battalion of Zakuul Knights using tripwire ambushes. The Outlander proceeded to the Control Spar and released the docking clamps securing the Gravestone, but was once again confronted by Arcann. HK-55 arrived just in time to assist the Outlander, sacrificing himself to shield his master from Arcann's Force blast. With Arcann proving too powerful, Valkorion offered to share his power, but the Outlander refused and was stabbed by Arcann's lightsaber.
Their companion then arrived and used the environment to knock Arcann off the Control Spar, sending him to the levels below, before escorting the injured Outlander back to the Gravestone via shuttle. Meanwhile, Senya disarmed Vaylin but couldn't bring herself to deliver the final blow. Everyone returned to the Gravestone just as it was taking off. Vortena piloted the ship toward the Eternal Fleet blockade, managing to destroy one Eternal Fleet warship with the turbolasers, despite the omnicannon being offline. Just as the Eternal Fleet prepared to unleash concentrated fire, the Gravestone jumped into hyperspace.
Once safe, the Outlander collapsed due to their injuries and spent several days recovering. Arcann, having survived his fall, informed Vaylin that Valkorion's power had diminished. With no further resistance, the Eternal Empire forces completely destroyed Asylum.
However, the battle demonstrated to the galaxy that Zakuul was not invincible. Beniko's contacts within the Galactic Republic and the Sith Empire pledged their support to the Outlander, gathering on Odessen to form an Alliance dedicated to overthrowing the Eternal Throne. HK-55 was seemingly destroyed beyond repair, lacking a backup memory core for transfer to another droid body. However, his chassis was later recovered by Doctor Juvard Illip Oggurobb, who eventually reconstructed the droid with modifications. Without his original memory core, however, the droid retained no memories of his past interactions with the Outlander.
Tanno Vik and his Blast Crew will only participate in the battle if the player spared him during Chapter VIII: Asylum. During the second duel with Arcann, Valkorion offers the player the chance to use his power to defeat his son. If the player refuses, earning Light Side points, Arcann impales the player with his lightsaber, but is knocked off the platform by either Koth Vortena or Lana Beniko, depending on who has a higher affection rating with the player. If the player accepts Valkorion's offer for Dark Side points, they unleash a storm of Force lightning, which Arcann barely withstands before being knocked off similarly; the storm also engulfs nearby refugee starships, instantly killing thousands on board. Finally, if the player declines the offer after accepting Valkorion's power on two previous occasions, Valkorion overrides the player's decision and unleashes the storm regardless.