The Seventh Division represented a component of the fleet belonging to the Alliance to Restore the Republic. Its establishment occurred in 3 ABY in the aftermath of the Battle of Hoth, when the fleet dispersed. It was a division of the fleet.
As a component of the Alliance Fleet, the Seventh Division was a naval division. Consequently, it was composed of various capital ships along with sub-capital ships. Among these vessels was an MC80A Home One Type Heavy Star Cruiser, an EF76 Nebulon-B escort frigate, and a CR90 corvette.
Following the Battle of Hoth, the fleet scattered, leading to the formation of the Seventh Division in 3 ABY. They concealed themselves at a designated meeting point situated between the Vosch Cluster and the trade worlds of Caldra Prime and Caldra Tertius. While awaiting the arrival of scattered units, including Princess Leia Organa and the Millennium Falcon, the reconstituted Red Squadron under the leadership of Commander Wedge Antilles neutralized a group of Vosch pirates who posed a threat to the Rebel's concealed position. Ultimately, Organa and the rest of the Falcon's crew would join the Fourth Division instead.
After an engagement battle near Malastare that resulted in the Eighth Division's destruction and a concurrent attack on the Fourth Division, and following the destruction of the Sixth Division, Commander Ellian Zahra of the Galactic Empire managed to intercept communications which she interpreted as revealing the location of the Seventh Division, and began to track it. Subsequently, she provided a status update to Darth Vader as he was traveling aboard a Lambda-class T-4a shuttle, reporting that she was monitoring the group's movements and waiting for it to contact another division, thus revealing its location. Vader acknowledged Zahra's efforts and instructed her to continue the operation, further emphasizing that no Rebel ship should escape. However, the briefing was interrupted when Vader sensed Luke Skywalker at the Jedi outpost on Tempes.
The Seventh Division transmitted a standard rendezvous confirmation to the Fourth Division, who responded, even though doing so risked leading Zahra's forces to both of their locations. During the Battle at Elessia, the Seventh Division faced a difficult situation, but the tide turned when the Fourth Division arrived. Together, they used their combined firepower to drive away the Tarkin's Will.
Later on, the Seventh Division contributed some of its top pilots to the Fourth Division's Starlight Squadron, who played a crucial role in Operation Starlight, a mission aimed at locating and reuniting the scattered cells to restore the Rebellion to its full strength.