The demonsquid, a creature of Aquaris, was a cephalopod with eight arms, classified as a mollusk. Native to this planet, it possessed formidable jaws situated beneath its cluster of appendages. This aquatic predator was notoriously aggressive, attacking any creature venturing near its lair. Its tentacles possessed the strength to gradually crush prey caught within their grip, and could easily destroy an aquaskimmer. However, the creature's vulnerable point was its brainsac, located on the back of its head; a direct hit from an aquaskimmer's weaponry was sufficient to kill it. Furthermore, piercing one of its tentacles with a stun blast or a sufficiently sharp object would compel it to release its victim, although the latter action risked provoking its enraged pursuit.
Kraaken, the second-in-command of the treacherous Aquaris Freeholders, employed a demonsquid in an attempt to eliminate a stun-shot Luke Skywalker. He asserted that the scheme was intended to allow Silver Fyre to earn the trust of the Rebels, facilitating their integration into the Rebellion. He also pretended that he would accompany Luke, but his true motive was to create a diversion while he attempted to steal the data stored on R2-D2 (which Han used as bait to expose his intentions). Fyre, to demonstrate her changed allegiance, blasted the demonsquid before it could fully devour the aquaskimmer. The attack nonetheless inflicted enough damage to destroy the vehicle, enabling Han to escape and rescue Luke. Following the successful rescue, the demonsquid seized Han and attempted to crush him with its tentacles. However, Chewbacca, Han's first mate on the Millennium Falcon, intervened, using a jagged piece of wreckage to impale the squid's tentacle. This forced the creature to release Han, though it then pursued them in a furious rage. With the demonsquid no longer focused on Silver Fyre's aquaskimmer, she delivered a precise shot to its brainsac, resulting in its immediate death and subsequent descent into the abyss.
Apart from that instance, Silver Fyre, while explaining her plan to "save" Luke to gain his trust, implied that demonsquids were a common danger to the Aquaris Freeholders' base.
In the novel "I Jedi," the Demonsquid is incorrectly stated to originate from the planet Mon Calamari (Dac) instead of Aquaris.