Kudo III, a terrestrial moon of the planet Kudo, existed within the Kudo system. This system was found in the Corvair sector of the Inner Rim Territories. The Kudon species populated this moon. During the Clone Wars, the Confederacy of Independent Systems subjected the inhabitants of a Kudon village to slavery within a battle droid foundry.
Rumors, intentionally spread by the Separatists, reached the Galactic Republic regarding the factory, as they planned to destroy it. Anakin Skywalker, a Jedi General, felt conflicted about the potential deaths and infiltrated the foundry alone. He then discovered the Kudon slaves. Skywalker liberated the slaves, averting their deaths and shielding the Republic from the negative consequences that the factory's destruction would have triggered.
Kudo III, possessing a terrestrial surface and a breathable atmosphere, was among at least three moons that orbited Kudo. It was situated within the Kudo system inside the Corvair sector of the Inner Rim Territories. While Kudo III showcased green landmasses and oceans, the area surrounding the droid foundry constructed by the Confederacy of Independent Systems was characterized by rocky and barren terrain.
By the year 22 BBY, the Confederacy of Independent Systems had control of Kudo III, where they established a factory to produce battle droids. Instead of automating the factory, they chose to gas a village, enslaving its Kudon residents to labor within its walls. After Galactic Republic forces were attacked by Separatist droid starfighters in the sector, they began searching for the origin of the droids.

The Separatists leaked information about the Kudo droid foundry as a ploy, hoping the Republic would destroy the facility, resulting in the deaths of the Kudon slaves. Upon learning about the foundry from the Republic's intelligence division, Admiral Wullf Yularen suggested an orbital strike to destroy it. Anakin Skywalker, a Jedi General who had participated in the earlier conflict, expressed concern for the Kudon casualties.
Skywalker altered the Republic's strategy, landing nearby and entering the foundry alone. He discovered that the Kudon were enslaved, contrary to the Republic's initial belief that they were working willingly for the Separatists. Drawing on his past as a slave, he attacked the B1-series battle droids guarding the machinery, liberating the Kudon, who then retaliated against their Separatist enslavers.
Kudo III was featured in Age of Republic - Anakin Skywalker 1, a comic written by Jody Houser, with pencils by Wilton Santos and Cory Smith, and published on February 6, 2019. The reference book Star Wars: Timelines from 2023 refers to Kudo III as a planet.