Theed served as the capital city for the Naboo, a human civilization residing on the planet also called Naboo. The palace of the Royal House of Naboo was located here, specifically on the Palace Plaza. Other notable landmarks included the Palace Courtyard, the power generator, and the headquarters for both the Royal Naboo Security Forces and the Naboo Royal Space Fighter Corps. Furthermore, Theed was a center for higher education, hosting a number of universities.
The city of Theed was situated on the verdant, green plains of Naboo, in the northern part of the planet where several other major cities were also located. Its location was approximately forty kilometers away from the Great Grass Plains. Functionally a floating city, Theed was built on the shores of the powerful Solleu River, which connected to a complex network of underwater passages, tributaries, and caverns formed by the volatile plasma energy within the planet's core, ultimately leading to areas like Lake Paonga and the Gungan city of Otoh Gunga. The city was also constructed above a substantial plasma source beneath the cliff edge, which, when utilized by the Naboo, supplied Theed with more energy than it needed.
The Theed Royal Palace was built on a huge cliff in the center of the city, providing expansive views of the surrounding countryside. The Theed Hangar was connected to the palace, and also to a power generator complex that used underground channels to extract plasma from the planet. Secret underground tunnels linked the palace, hangar, and other significant locations within the city. The Theed Funeral Temple was located in a peaceful area of the city, and was the site of traditional Naboo funeral ceremonies where the ashes of the cremated were scattered into the Solleu River.
Theed was a city known for its culture, with refined architecture and a consistent, harmonious style resulting from reconstruction efforts after a tumultuous past. Its domed structures had a handcrafted appearance, although areas such as the modern and technological Theed power generator, a popular destination for tours, contrasted sharply with this aesthetic.

Despite facing periods of unrest in its early history, Theed's rebuilding efforts resulted in a unified style of elegant, domed architecture and a sophisticated culture. For centuries, Theed relied on energy from small, remote plasma mines, but the construction of the Theed power generator led to greater efficiency and a surplus of plasma energy.
The Naboo consistently utilized the porous qualities and expanded the tunnels beneath the city. Captain Panaka inspected these tunnels before the invasion of Naboo, and found them in a state of disrepair. The security teams cleared the tunnels, which proved to be extremely valuable during the droid occupation of the city.
In 32 BBY, Naboo and its cities were invaded by the Droid Army of the Trade Federation, which landed in secret and advanced on Theed the next morning. The citizens were caught off guard, and many were captured after Queen Padmé Amidala continued to pursue a peaceful resolution to the crisis. Viceroy Nute Gunray oversaw the arrest of Amidala and her government, and made the Theed Royal Palace his base of operations during the Federation's occupation. With citizens held in detention camps and its streets blocked off, Theed became a deserted city inhabited only by patrolling battle droids.
Amidala was rescued by Jedi Qui-Gon Jinn and his Padawan Obi-Wan Kenobi, and although her plea for help to the Galactic Senate was ignored, she returned to Naboo with a plan to reclaim her city. While Captain Panaka directed underground resistance groups to infiltrate key locations such as the hangar, Amidala led a team to retake her palace and force Viceroy Gunray to relinquish power.
The effort was ultimately successful, and the droid forces were expelled from Theed. A celebratory parade was held after the battle to mark the return of peace and to celebrate the alliance between the Naboo and the Gungans.
Near the end of the Clone Wars, a funeral took place for Padmé, who had lost her will to live after witnessing Anakin Skywalker succumb to the dark side of the Force due to his inability to overcome his desire for her.
After the destruction of Alderaan and the subsequent Battle of Yavin, Leia Organa, accompanied by her droid R2-D2 and rebel pilot Evaan Verlane, visited Theed to rescue Alderaanians residing on Naboo. They landed at Theed's Star Port and registered their ship to receive rations, where Organa used the alias "First Minister Solo." The two explored the City Streets and admired the Theed Royal Palace. They encountered Lord Junn, a local nobleman, and explained their purpose. He arranged a meeting between Organa and Verlane, and the Melodic Order that lived in the nearby Keren. Organa later returned to Theed after fending off thugs and rescuing the Melodic Order and nearby Alderaanian communities. She negotiated with Junn and obtained a ship for the caravan she was organizing. The Naboo Alderaanians then left Keren and Theed to travel towards Sullust.
In 4 ABY, Organa returned again, this time with Pilot Shara Bey, to discuss Naboo's integration into the New Republic with Queen Sosha Soruna. During this time, Operation Cinder was initiated by the Empire on Naboo. The three then went into the Palace Hangar, where they discovered three old N-1 Royal Naboo Starfighters. They used these ships to fight the Empire above the planet, which was creating storms above several Naboo cities, including Theed. Eventually, the New Republic Fleet, led by General Lando Calrissian and Inferno Squad members Iden Versio and Del Meeko, arrived. They destroyed the satellites and star destroyers. Naboo's security system was disabled. After meeting in Theed and beginning the city's defense, Organa, Versio, and Meeko had to move around the city and reactivate it. All New Republic and Naboo Royal Security personnel sought refuge in the palace and hid from the security system, which disabled all stormtrooper blasters, Imperial vehicles, and TIE-fighters. Naboo, and Theed along with it, later became a founding member of the New Republic.