The Millennium Falsehood was a light freighter of the YT-1300 model, but it was modified.
To undermine Warlord Zsinj as part of his strategic plan, General Han Solo gave Wraith Squadron permission to construct a counterfeit Millennium Falcon in order to draw the Warlord into an ambush. At that time, the real Falcon was safely stored on the Rebel Dream.
A group of Corellians that included Wraith pilot Myn Donos, Rogue Squadron pilot Corran Horn, Wraith chief mechanic Cubber Daine, and Rogue Squadron's quartermaster droid M-3PO took a shuttle to a junkyard within the Corellian system, as that was the place to find YT-1300s at the lowest prices and with the greatest ease.
They exchanged a hyperdrive-equipped TIE/IN interceptor that Shalla Nelprin had obtained from Razor's Kiss, and they then traveled back to Mon Remonda with a dilapidated vessel that Solo described as "the ugliest ship I think I've ever seen." Chewbacca then worked on the Falsehood to give it a cosmetic resemblance to the Falcon, covering rust patches with paint and adding fake rust to clean hull sections to mimic the original surface patterns. Although it lacked the Falcon's speed, its armament was comparable. Furthermore, the Falsehood was barely capable of space travel when it was first acquired. It was rumored to have been purchased from a local scrap dealer, which supports the idea that it originated from a junkyard.
Wedge Antilles and Chewbacca landed on Kidriff 5 during the Falsehood's inaugural mission. Antilles realized that he couldn't speak Shyriiwook, and therefore had to bring Squeaky, Wraith Squadron's droid quartermaster, to serve as a translator. The mission proceeded as planned, except for Gara Petothel's defection to Zsinj, although Tycho Celchu of Rogue Squadron did refer to the Millennium Falsehood as a "flying bathtub."
Even though Petothel might have jeopardized the Falsehood operation, Antilles chose to proceed with the strategy. The majority of the freighter's missions involved covert insertions followed by highly visible departures. Zsinj was convinced that the ship was actually the Falcon, which greatly annoyed him.
During an insertion into Comkin V, the Falsehood was outfitted with hull plating to give sensors the impression that it was a YT-2400. Additionally, this plating concealed an A-wing and a sizable explosive device. Both of these concealed assets were used to great effect as the ship departed the planet, when Zsinj deployed the Dreadnaught Reprisal to stop the freighter. Gara Petothel was flying with Zsinj's fake 181st Imperial Fighter Wing, and she was desperately trying to avoid hurting any New Republic forces, so she intentionally crashed into the Falsehood.
The Comkin engagement did not result in significant losses for either side, and the Millennium Falsehood continued to operate. It was scheduled to next appear in the Vahaba system, but Zsinj moved his fleet into the system before the Falsehood could launch.
After the Battle of Vahaba, the Millennium Falsehood was never seen again, but it is assumed that the New Republic continued to own it. Han Solo intended to suggest that the ship be displayed in a museum, primarily to put an end to the requests that he donate the authentic Millennium Falcon.