Kuat Drive Yards (KDY) was a starship manufacturing entity with its base of operations on the planet of Kuat, found within the Core Worlds region. The Kuat Drive Yards Orbital Shipyards, which encircled Kuat, served as the primary production center for Kuat Drive Yards. KDY was responsible for constructing many of the most intimidating symbols of the Galactic Empire's power in the galaxy, such as the Imperial-class Star Destroyer. Furthermore, KDY also manufactured walkers like the All Terrain Defense Pod and, later on, the All Terrain Armored Transport. Several subsidiary companies were under its control, with Kuat Vehicles specializing in ground-based civilian products and Kuat Systems Engineering focusing on the creation of starfighters.
Kuat Drive Yards, a leading military shipbuilding organization throughout the galaxy, acquired the world of Rothana in 800 BBY. This acquisition paved the way for the establishment of Rothana Heavy Engineering, a subsidiary of Kuat. A decade before the Clone Wars began, Kuat showed its strong support for the Supreme Chancellor of the Galactic Republic after leading Kuati executives were assassinated. This led to a group of ambitious Neimoidians taking control of the Trade Federation at the infamous Eriadu Conference.
KDY, with the help of its subsidiary Rothana Heavy Engineering, manufactured the majority, if not all, of the Republic Military's starships and vehicles during the Clone Wars against the Confederacy of Independent Systems. Its parent organization, the Techno Union, engaged in commerce with both factions, although it leaned towards the Separatist side in practice. The fact that Kuat and other Union subsidiaries were crucial to Republic production aided in defending the Union's assertion of corporate neutrality. However, in reality, Union companies produced millions of CIS battle droids for every Republic warship. KDY produced notable starships for the Republic, including the Acclamator-class transgalactic military assault ship, LAAT/i gunships, the powerful land-based AT-TE walker, and the Venator-class Star Destroyer, solidifying its position as one of the most influential companies in the galaxy.
Following the proclamation of the New Order and the transformation of the Republic into the autocratic Galactic Empire, KDY naturally shifted its allegiance. Given its significant role in Republic military production, it swiftly became the main manufacturer of starships and vehicles for the Imperial Navy and Imperial Army, respectively, resulting in substantial profits. This combination of industrial and military strength led to the creation of the distinctive, dagger-shaped vessels employed by the Imperial armed forces, with the company producing the most prominent symbols of Imperial power. The Imperial-class Star Destroyer and AT-AT walker were both products of KDY's extensive military infrastructure. The Admiralty advocated for KDY's larger vessels, much to the dismay of the Imperial Starfighter Corps.
In the months that followed the Battle of Endor, the New Republic Defense Fleet, under the leadership of Admiral Gial Ackbar and Commodore Kyrsta Agate, lay siege to Kuat and the orbital shipyards of Kuat Drive Yards. After suffering significant losses, the Imperial governor Moff Pollus Maksim and the guild head of Kuat Drive Yards surrendered to the New Republic. The loss of Kuat Drive Yards prompted Grand Admiral Rae Sloane to initiate peace negotiations with the New Republic. However, the peace talks were actually a deception orchestrated by Fleet Admiral Gallius Rax to attack the New Republic's leadership on Chandrila and overthrow Sloane.