The compact explorer vessel, initially designated YT-XC but subsequently nicknamed the "mini-fighter," was designed for transport aboard the YT-1300 light freighter.
Resembling the general concept of an explorer craft, the YT-XC functioned as a single-pilot exploration starship. It was engineered by the Corellian Engineering Corporation specifically for deployment from a YT-1300 light freighter. The YT-XC's development stemmed from the research efforts associated with the unsuccessful freight-loading external rover program. Despite high market interest, Imperial Customs raised concerns, leading CEC to restrict sales to relief organizations, scientific institutions, and officially licensed industrial prospectors. Nevertheless, several YT-XCs fell into the hands of pirates and smugglers, who modified them into small starfighters. Notably, Han Solo and Chewbacca once utilized one on their vessel, the Millennium Falcon.

The YT-XC was intentionally built to fit inside the YT-1300, hidden behind what appeared to be a standard docking ring hatch. Its interior space was sufficient to accommodate a full-grown male Wookiee. Later models of this craft were armed with a pair of blaster cannons along with concussion missiles.
The designers working on the Hasbro Legacy Collection Millennium Falcon incorporated the mini-fighter into the Falcon playset. Their reasoning was that the Falcon's substantial dimensions made it more suitable as a stationary playset rather than a mobile vehicle. According to designer Mark Boudreaux, they felt that "There had to be some way to fly some part of the Falcon around."

- " Millennium Man " — Star Wars Insider 106
- ° Star Wars: The Legacy Collection
- Millennium Falcon Owner's Workshop Manual (The first source to identify the craft as the YT-XC)
- " Classic Moment: The Fastest Hunk of Junk in the Toybox! " — Star Wars Insider 157 (also reprinted in Icons of the Galaxy)
- The Legacy Collection Deluxe Millennium Falcon Review on Jedi Insider (backup link archived on March 13, 2019)