A hyperspace transponder served as a communication tool, enabling the transmission of messages via hyperspace. Certain transponders achieved a compact size, making them suitable for use as portable, handheld units. However, the reliability of hyperspace transponders in delivering messages was sometimes questionable.
Within military homing beacons, hyperspace transponders functioned as essential internal elements.
Mara Jade Skywalker, a Jedi Master, employed at least a pair of hyperspace transponders throughout her life. One functioned as a homing beacon during her tenure as the Emperor's Hand (this particular transponder was concealed within a vibroblade that she passed down to her son, who then quickly put it to use as a tracking device). The other transponder was used by her to locate Lumiya following their intense lightsaber duel that occurred on the Hesperidium moon.