Squadron Three was one of the six squadrons composing the 204th Imperial Fighter Wing. This fighter wing served the Galactic Empire throughout the Galactic Civil War.
As a component of the Galactic Empire's 204th Imperial Fighter Wing, Squadron Three was a squadron operating TIE fighter craft. Captain Wisp commanded the squadron, and Lieutenant Garmen Naadra served as one of its staff officers. Duchas Cherroi and Gargovik were among its other members.
During the New Republic's attack on Pandem Nai in 4 ABY, Wisp's squadron suffered near-total losses.
The squadron took part in an attack targeting Cerberon around 5 ABY. Following the attack, the squadron was assigned to locate the remaining New Republic forces. During this assignment, Lieutenant Garmen Naadra was killed within the caverns below Troithe, marking the first pilot lost since the engagement against the Lodestar.
At some point after their departure from Cerberon, but before the smirmish within the Ciaox Verith system, the squadron's ships received upgrades. These upgrades involved the installation of hyperspace docking rings discovered in a supply cache dating back to the Clone Wars. This newfound capability for lightspeed travel enabled the squadron's TIEs to conduct rearguard patrol missions in distant systems, operating far from their base on the Yadeez.
Later in that same year, the squadron participated in a battle fought at Chadawa, and later they fought in the Battle of Jakku. At Jakku, the 204th was defeated by New Republic forces under the command of General Hera Syndulla.