The Graveyard represented the scattered debris of the planet Alderaan following its annihilation at the hands of the original Death Star.
Upon arriving at the former location of the world, the Millennium Falcon, piloted by Han Solo and Chewbacca, emerged from hyperspace directly into the heart of the newly formed asteroid belt.
Many Alderaanian Exiles observed a personal ritual known as the Returning, where they launched capsules containing tokens for loved ones. Certain Alderaanians, known as the Guardians, dedicated themselves to patrolling the Graveyard to protect the capsules from pirate theft. These Alderaanians were highly respected by the exiles.
In the months that followed Alderaan's destruction, Imperial operatives frequently waited in ambush for vessels performing the Returning ritual. They would seize the ships, arresting all passengers and crew. The Rebel Alliance contemplated placing the Graveyard under quarantine, considering the Imperial actions too dangerous for the Alliance.
The asteroid field served as the location for a short conflict where Renegade Squadron recovered a holocron that had survived the destruction of Alderaan.
The scattered fragments of Alderaan's ruined moon were also dispersed throughout the Graveyard.