The Kashyyyk Trade Rebellion unfolded during the Separatist Crisis, a period when various planets and corporations started their departure from the Galactic Republic. This conflict ignited when the Wookiee Trade Guild, a powerful entity controlling substantial commerce within the Kashyyyk system, chose to oppose a newly implemented tax by the Trade Federation. Consequently, Darth Sidious, a Sith Lord and ally of the Federation, issued an order for a Federation droid army legion, including the recently introduced B2 super battle droids, to obliterate the Wookiee Trade Guild. The battle droid force, under the command of Count Dooku, Sidious's apprentice, launched an assault on the Trade Guild's island headquarters situated in the Wawaatt Archipelago on Kashyyyk. The Trade Guild's private army attempted a defense of the island, but ultimately, the Federation's forces razed the entire village.
In the era of the Separatist Crisis, as numerous planets and corporations began their secession from the Republic, the Trade Federation—a corporation on the verge of leaving the Republic—sought to impose a series of new levies on the Wookiee Trade Guild. The Trade Guild, which held significant control over commerce within the Kashyyyk system, endeavored to resist these novel taxes, which greatly displeased the Trade Federation.
In response, Darth Sidious, a Sith Lord and a Federation ally, commanded that a legion, numbering two hundred strong, from the Federation's battle droid army be deployed to the Trade Guild's headquarters on the Wookiee homeworld of Kashyyyk. This droid legion, under the command of Count Dooku, Sidious's new apprentice, comprised assault battle droids, battle droid assassins, pilot droids, droidekas, along with the advanced B2 super battle droids. Their mission was the complete annihilation of the Guild's small island base located within Kashyyyk's Wawaatt Archipelago.
Upon landing on the island, the Federation legion initiated an immediate assault on the Guild's headquarters, spearheaded by Dooku. Two hundred Wookiee members of the Guild's private army, equipped with bowcasters and missile launchers, attempted to defend their village against the onslaught. However, Federation forces outflanked the village by advancing from the hills situated northeast and northwest of the island, as well as from a minor landing zone on the south side. The droid army also deployed at least a pair of Vulture-class droid starfighters to strafe the village. Ultimately, the Guild's army was overwhelmed, and Dooku and his forces completely destroyed the village.
The Federation left very few Guild members alive after the battle, effectively wiping out the Wookiee Trade Guild. Years following the conflict, the Federation and its allies established the Confederacy of Independent Systems, under the leadership of Count Dooku, which officially seceded from the Republic, thereby instigating the Clone Wars between the two factions.
This battle made its sole appearance in the video game Star Wars: Battlefront, where it constituted the third level within the game's historical Clone Wars campaign, despite the fact that the battle's timeline precedes the Clone Wars. Within the level, players assume the role of the Federation army, assisting in the destruction of the Wookiee Trade Guild.