The Battle of Gilatter VIII arose from a carefully orchestrated trap set by the Confederation Fleet, now under the command of Turr Phennir. Following the Blockade of Corellia's failure against Bothan and Commenorian forces, and the subsequent decisions by Adumar, Bespin, and Fondor to align with the opposition, it became evident that a unified command structure was essential for the Confederation's military.
To that end, the Confederation disseminated misleading information, suggesting a clandestine meeting in the Gilatter system to select the Supreme Commander of the Confederation military. Jacen Solo, leading the Galactic Alliance Guard, spearheaded the operation, supported by Galactic Alliance forces under the command of Admiral Cha Niathal.
Simultaneously, Jedi Grand Master Luke Skywalker, accompanied by his wife Mara Jade Skywalker, his sister Leia Organa Solo, and her husband Han, engaged in combat with the Sith Lady Lumiya and her accomplice, Alema Rar, on the Gilatter VIII resort satellite.

Deceived by the fabricated intelligence, Jacen Solo devised a four-pronged strategy to intercept the supposed assembly. First, Jedi piloting StealthXs would infiltrate the system undetected, relaying data to the Alliance fleet. This fleet, a composite force drawn from various task groups scattered across the Mid Rim, would then converge. To maintain the element of surprise and avoid alerting Confederation intelligence, the Alliance opted to assemble a fleet from available resources rather than redeploying an entire fleet group, which would have signaled their intentions. This strategy likely explains why Admiral Niathal commanded the battle from the Galactic Voyager, the renowned flagship previously helmed by Admiral Gial Ackbar. Elements of the Ninth Fleet also participated in the task force. The third phase involved the fleet positioning itself in the upper atmosphere of Gilatter VIII, remaining cloaked from enemy sensors until the StealthXs provided the go-ahead. Solo himself made the decision to infiltrate the resort satellite disguised, aiming to inflict maximum disruption on the Confederation's chain of command.
Under the guises of Najack and Silfinia Ell, Jacen and Lumiya, who accompanied him, infiltrated the election ceremony, posing as members of the Ession Freedom Front. Simultaneously, the Confederation forces, ostensibly preparing for an offensive against the Alliance, continued to amass within the system. Upon reaching the designated meeting room, Solo was surprised to find it devoid of any significant figures. Moments later, Turr Phennir appeared via hologram, reveling in the fact that Niathal's command had been lured into a minefield. Fortunately for the Alliance, Jacen was able to foresee the mines, and alert Luke Skywalker, who was part of the StealthX contingent. Skywalker then relayed the warning to Admiral Niathal.
Skywalker and his wife Mara Jade Skywalker infiltrated the resort station to rescue their nephew, who had been attacked by Confederation troops within. Lumiya, unable to assist Jacen without revealing her allegiance, conspired with her ally, the Dark Jedi Alema Rar, who intended to murder Master Jade Skywalker and Han Solo in front of their spouses, causing them immense emotional pain before killing them as well. Rar sensed that Leia Organa Solo and her husband, along with the Masters Skywalker, were en route to the station to rescue their son, thus positioning the final two pieces of her plan. Rar believed that the elimination of the Solos and Skywalkers would restore "the Balance".
As the Masters Skywalker navigated through the chaos to reach their nephew, who continuously rejected their assistance due to strained relations, they were intercepted by Lumiya. While Luke engaged the Dark Lady, Mara defended against the rapidly converging security forces.
Luke ignited his shoto, his lightsaber already active, and parried the strikes of Lumiya's lightwhip. As the Solos arrived, Han attempted to shoot the Dark Lady, but she anticipated his move, evaded the blaster bolt, and resumed her duel with the Grand Master. Luke caught a strand of Lumiya's lightwhip with his long blade, then darted in close to the Sith, attempting to slash her with his shoto. However, through an exertion of the Force, she hurled a severed human head into his path, causing him to strike it instead.
Employing a similar tactic, Luke used the Force to direct a tablecloth at Lumiya, which enveloped her from behind. However, she slashed her whip backward, bisecting the tablecloth before transitioning into a forward attack. Luke deflected the individual tendrils of Lumiya's weapon, utilizing both of his blades, before leaping over the remaining strands. Luke was forced to jump again to evade Lumiya's follow-up attack. However, surprisingly, Lumiya then lowered her weapon.

The Dark Lady claimed to have relinquished her hatred for her former love, even offering him her hand, which he hesitantly accepted. Despite his reservations, the Grand Master sensed no malicious intent in his longtime adversary.
After his failed attempt to shoot Lumiya, Han followed Leia as she moved to assist Luke against the Dark Lady, rather than aiding Mara, who was effectively managing her situation. However, the Jedi Knight was knocked off her feet when a table was telekinetically hurled into her path. Leia quickly recovered, ignited her lightsaber, and saw Alema Rar emerge from the shadows.
Ignoring his wife's insistence that she duel Alema without his interference, Han attempted to shoot the fallen Jedi, who deflected the bolt with a flick of her lightsaber before spinning it defensively in front of Leia. Organa Solo unleashed a relentless barrage of lightsaber strikes against her longtime rival, but the rogue Jedi simply retreated each time Leia gained the advantage. She fought defensively, never attempting to attack, a departure from her typically aggressive style.
As Organa Solo pressed her attack, forcing her foe into a corner, Han informed her that their son Jacen, for whose rescue they had risked their lives, had escaped, abandoning them to their fate. Though hurt, Leia remained focused on her battle with the deranged Alema, continuing to wear down the Dark Jedi's defenses. However, while Leia was distracted, Alema activated the controls of her ship, which automatically directed it into the station in an attempt to kill her enemies.
Organa Solo used the Force to leap away from her foe, who had already seized the opportunity to begin her escape, and along with her brother, sister-in-law, and husband, escaped the destruction of the station.
However, instead of ordering a retreat, Niathal commanded the fleet to advance into the minefield, knowing that abrupt course changes would only attract more mines. The Anakin Solo and other outlying ships microjumped into the battle. She instructed the second-tier capital ships and starfighters to form up behind the leading capital ships and enter the minefield. This disrupted the Confederation's carefully planned assault, and the conflict devolved into a chaotic slugging match. However, Jacen Solo, now en route to the Anakin as his family engaged Lumiya and Alema on the resort satellite behind him, angrily observed that the Alliance fleet lacked coordination, squandering several opportunities. Forces milled about aimlessly instead of pursuing targets, at least one frigate retreated unnecessarily, and a Bothan Assault Cruiser, though heavily damaged, was not destroyed by its attackers, who missed their chance.
The Confederation declared Gilatter VIII a decisive victory against the Alliance, praising Phennir for his strategic brilliance. The Alliance, conversely, maintained that even with meticulous planning and numerical superiority, the Confederation had failed to achieve a victory.
Alema's attempt to restore the Balance ultimately failed, as all of her intended victims escaped. Lumiya also escaped the destruction of the station and continued to train Jacen Solo, who had further alienated himself from his family by abandoning them aboard the resort, despite their arrival to rescue him.
The Solo-Skywalker clan was deeply disturbed by Jacen's actions. Lumiya, also escaping the station, traveled to the Anakin and promised Jacen that she would teach him advanced Battle meditation techniques to ensure future military victories.