Blue Squadron, alternatively referred to as Blue Squad, was a unit composed of 24 novice Bothan starfighter pilots and gunners. These individuals operated BTL-S3 Y-wing starfighters to support the endeavors of the Bothan Spynet in their assistance to the Rebel Alliance. Luke Skywalker was responsible for assigning the unit's color designation and name. According to Koth Melan, the Bothan pilots slated for Blue Squadron had logged fewer than 100 flight hours in their Y-wings, but were considered to be adequate shots. Ace Azzameen, a human Rebel pilot, was selected to join the Bothan pilots of this squadron, filling a vacancy due to his impressive performance record.
Blue Squadron, under the leadership of Commander Luke Skywalker (callsign Rogue Leader) flying his T-65 X-wing starfighter, provided aerial support for a data-raid on the Imperial armed freighter Suprosa. A Bothan team boarded the Suprosa via the freighter Outrider, piloted by the mercenary Dash Rendar, with the objective of seizing a supercomputer. This supercomputer was later discovered to contain the plans for the second Death Star. During the engagement, the Suprosa launched a single diamond boron missile towards the approaching fighters. Despite Rendar's attempts to intercept it, the missile successfully detonated within the Blue Squadron formation, instantly destroying four ships and their crews. Skywalker and Azzameen worked together to disable the freighter. After the ship surrendered and the supercomputer was secured, the surviving members of the squadron traveled to Kothlis to deliver the data to the skilled slicers of the Spynet. A total of six fighters, resulting in the deaths of twelve Bothans, were lost during the raid.
In contrast to the novel Shadows of the Empire, which suggests Blue Squadron is exclusively composed of Bothans, the video game Star Wars: X-Wing Alliance depicts the human Ace Azzameen, the game's protagonist, as Blue Six.