The Space Battle of Kuat unfolded in 1 BBY, an operation spearheaded by Rebel Alliance Captain Raymus Antilles. Its purpose was to draw the Imperial I-class Star Destroyer Tyranny away from the planet of Fresia. Fresia was the secret location of four prototype T-65 X-wing starfighters. During this engagement, Antilles led five CR90 corvettes, including his flagship, the Sundered Heart, in a daring raid against the Imperial shipyards orbiting Kuat. They successfully destroyed numerous unfinished ships while Imperial forces struggled to organize a response. The rebels achieved their objective, withdrawing into hyperspace shortly after the arrival of the Tyranny.
In the initial phases of the Galactic Civil War, the Galactic Empire made the decision to nationalize the independent Incom Corporation, a practice they had employed with other entities. However, a significant portion of Incom's design and research personnel vehemently opposed this action, leading many to defect to the Rebel Alliance in 0 BBY. These defectors provided the Rebellion with information about a facility located on the planet Fresia that housed four prototypes of Incom's latest starfighter design: the T-65 starfighter, which would become widely known as the "X-wing" fighter.
Needing a new starfighter to replace the aging Z-95 Headhunters that were commonly used, the Rebel Alliance sent a team led by Captain Raymus Antilles in 0 BBY. Their mission was to secure the prototype X-wings from the Empire. However, upon entering the Fre'ji system, Antilles' task force discovered the Imperial I-class Star Destroyer Tyranny in orbit around Fresia. This presented a major problem: the Tyranny's presence prevented the task force from approaching the planet.
Leading four corvettes in his modified CR90 corvette, the Sundered Heart, Antilles initiated a swift raid on the orbital shipyards of Kuat. The goal was to lure the Tyranny away from Fresia and back to its usual position above Kuat. Imperial resistance at Kuat proved minimal, and the Rebel corvettes easily overwhelmed the defending TIE/LN starfighters and Tartan-class patrol cruisers. The Rebel corvettes targeted the many orbital resource containers scattered around the partially completed starships. The resulting explosions severely damaged the surrounding shipyards.
Initially, the Tyranny repeatedly ignored distress calls from the shipyard's communications officer. However, after the Rebels destroyed the last shipyard, the officer activated Emergency Code Zero. This prompted the Tyranny to return to Kuat to assist the Imperial defenders. The commander of the Tyranny cautioned the Comm Officer that by invoking Code Zero, he had altered Vader's plans and will answer to him if the code was invoked lightly. The Star Destroyer emerged from hyperspace with its shields down, giving the small Rebel force an opportunity to inflict damage on the warship before making their escape.
The Rebels believed that the destruction at the Kuat shipyards and the damage inflicted on the Tyranny would leave Fresia vulnerable, allowing them to seize the Incom facility. However, before returning to Kuat, the Tyranny had deployed numerous sentry drones to secure the Fre'ji system in its absence. Upon discovering this, it appeared that the mission to retrieve the prototype X-wings would have to be abandoned. However, the protocol droid C-3PO conceived a plan to bypass the Imperial defenses. His astromech droid counterpart, R2-D2, would travel to the planet Wayland to steal the Imperial codes necessary for a Rebel team to enter the Fre'ji system undetected. Antilles approved this plan and immediately dispatched C-3PO and R2-D2 to Wayland, accompanied by a large ground force for protection.
The Space Battle at Kuat serves as the introductory mission for the Rebel campaign in the 2006 LucasArts PC game Star Wars: Empire at War. It is the first of three missions that ultimately lead to the Rebellion acquiring T-65 X-wing starfighters. The battle was initially designated as the "Space Battle at Kuat" in the game's official strategy guide, published by Prima Games.