The Battle of Ralltiir occurred during the Second Imperial Civil War. This conflict unfolded in 137 ABY within the orbit of the planet Ralltiir. The combatants were the Galactic Alliance Remnant and Roan Fel's Empire-in-exile on one side, pitted against Darth Krayt's Galactic Empire on the other. The battle's outcome was the near annihilation of the Coruscant Third Fleet.

The Remnant fleet emerged from hyperspace directly in front of the fleet that was stationed at Ralltiir. Stazi's intention was to capture these ships to reinforce his own fleet, while simultaneously straining the Sith's resources. Catching the Imperials off guard, Stazi's forces successfully destroyed an ion cannon battery that was positioned on Ralltiir's Moon Twelve. The fleet managed to weaken the areas around the engines and defensive systems of the Imperial ships. However, the attack proceeded too slowly, and the ships of the Coruscant Third Fleet were able to raise their shields. Before the situation could worsen, the Bastion Second Fleet, loyal to Roan Fel, arrived to give support to the Galactic Alliance forces. They had waited for Stazi to fully commit to the attack before joining the battle, which successfully breached the enemy's defenses.
Admiral Edouard Fenel of the Fel Empire called for a ceasefire. He then commanded the crews of the opposing Imperial fleet to either surrender their ships to the "true" Emperor or seize control of them by any means necessary if their superiors refused. This strategy seemed to be effective until Captain Vaclen Tor dissented, declaring that the Fel Empire and the Galactic Alliance intended to capture the Third Fleet's ships. He stated that their duty required them to fight to the end or, at the very least, activate the self-destruct systems on their ships and evacuate, which Captain Tor began preparations for.

In an attempt to punish Tor, Admiral Fenel launched an attack on his frigate, the Steadfast, and ordered the other defending Imperials to support him. When they refused, he persisted, leading Admiral Kelsan to reconsider surrendering the ships. He then ordered all the men under his command to follow Tor's example. Fenel then tried to order Stazi to block their escape, an order that the Alliance Admiral refused, as he was not under Imperial command. Instead of targeting the Imperial escape pods leaving the self-destructing ships, he positioned his fleet between the two Imperial fleets and dispatched a squadron of fighters to protect the Steadfast. Thanking Stazi for his assistance, the Third Fleet Admiral Peto Kelsan went down with his ship. The Alliance fleet ultimately shielded the Steadfast from a final fighter assault from Fenel's forces, compelling them to accept the Alliance's stance of not following Imperial orders when they conflicted with Alliance values.

Although only a single ship was acquired, the destruction of the Coruscant Third Fleet signified a major victory for the Alliance Remnant and Empire-in-exile against the Sith-led Empire. The Imperial Navy would need to stretch its resources to compensate for the loss of the fleet, and Krayt's Empire was revealed to be less invincible than it appeared.
Following the battle, Emperor Fel discussed the outcome with Stazi. After a brief disagreement, during which Stazi emphasized that the GA would not become vassals of Fel's Empire, Fel conceded that they needed to improve their cooperation. He also apologized for Fenel's actions, admitting that he had overestimated Fenel's understanding of the situation.
The Steadfast, its self-destruct mechanism having been disabled earlier by a barrage, was given to Fel's forces as a gesture of good faith. Stazi had demonstrated himself as an equal statesman capable of withstanding Fel's intimidation for the time being, and the alliance between the GA and the Fel Empire remained intact, although Stazi was uncertain about its long-term stability.