Nilash III, also known as just Nilash, held the position of the third planet within the Nilash system. Its location was in proximity to Chelloa, a planet abundant in baradium. This world served as the habitat for a native species that lived in tree canopies and possessed telepathic abilities. It also functioned as a notable source of anthracite. During the period of the New Sith Wars, a Daimanite munitions production facility was situated on this jungle-covered planet. Later, under the dominion of the Galactic Empire, the Nilash Imperial Impound Facility was established in orbit around Nilash III. This planet marks the location where the smuggling freighter that would become famous, the Millennium Falcon, initially known as the Second Chance, was acquired by the Rebel forces for the first time. In the subsequent years, governance of Nilash shifted back and forth between the Empire and the Rebellion's successive iterations.
Prior to or during the New Sith Wars, the Ithor Outreach organization conducted anthropological investigations into the native species that inhabited the tree tops, and then documented their discoveries in written accounts.
Subsequently, amidst the conflict involving Sith Lords Daiman and Odion, Nilash III was integrated into Daiman's territory. It accommodated a munitions manufacturing complex where the enslaved local population was compelled to perform labor.
Leading up to Operation Influx, the Jedi-led initiative in 1032 BBY, Jedi Master Vannar Treece prepared a report for Supreme Chancellor Genarra of the Republic. This report covered the planets within the Grumani sector and featured a concise portrayal of Nilash III and its indigenous inhabitants. He characterized their ingenuity and resilience as "inspiring" and their telepathic talent as "remarkable".
Following the unsuccessful Jedi undertaking and the ensuing devastation of Chelloa, the baradium-rich Daimanite planet, Jedi Knight Kerra Holt journeyed to Nilash and freed the enslaved native workforce, who then vanished into the surrounding jungle. Furthermore, due to Daiman's directive to coat all his statues throughout his realm with cortosis plating after Holt had decapitated over a dozen on Chelloa as a gesture of defiance and warning, the young Jedi also took a high-powered laser from the weapons facility, engineered for slicing cortosis, and employed it to detach the heads of thirteen statues positioned in a small plaza at the complex. Upon being informed by the administrator of the munitions plant, Daiman himself arrived on the planet, where, accompanied by his aide Uleeta, he assessed the damage and interpreted the act of vandalism as a declaration that Holt "existed" and was "not going away".
Approximately five to six weeks later, when Narsk Ka'hane, an Odionite spy, was dispatched to Daiman's capital world of Darkknell on a mission to obliterate the Daimanate Dynamic Testing Facility, he fabricated a cover identity as a machine tool operator transferred from Nilash.
During the war between the Republic and the Brotherhood of Darkness under the leadership of Sith Lord Kaan three decades later, Nilash III remained situated within Sith-controlled territory.
During the Clone Wars, the Separatists held authority over the Grumani sector, encompassing Nilash III.
During the Imperial Period, the Nilash Imperial Impound Facility, an orbital impound yard under the Imperial regime, was located there. In 10 BBY, the YT-1300 light freighter known as the Second Chance, which would later be known as the Millennium Falcon, was taken from Nilash III by Zenn Bien, a ship thief, along with Quip Fargil and Luufkin, who were Rebel operatives.
Not long after the demise of the Emperor Palpatine during the Battle of Endor in 4 ABY, a substantial portion of the Grumani sector, including Sanrafsix, fell under the control of Admiral Sander Delvardus's newly established Imperial faction, the Eriadu Authority. However, his dominion was short-lived, as the emerging New Republic recaptured Sanrafsix and the remainder of the sector the following year.
When Grand Admiral Thrawn of the Imperial forces returned to known space in 9 ABY and initiated his campaign of conquest, the Grumani sector was either seized or allied itself with Thrawn's military forces.
The Grumani sector, including Nilash, remained untouched by the Yuuzhan Vong War that devastated the galaxy from 25 ABY to 29 ABY.