Xa Fel was the site of a major Kuat Drive Yards manufacturing facility that produced twenty percent[source?] of the corporation's hyperdrive engines and served as the nexus of the Xal Fel economy. The unscrupulous manner in which KDY managed the facility left the world terribly polluted and eroded, devoid of natural resources.
Xa Fel joined the Galactic Republic prior to the Indecta Era. During the Alsakan Conflicts, it supported Alsakan.
During the Thrawn campaign, the planet was a New Republic world that surrendered to Captain Harbid and Thrawn's forces after a thirty-hour battle.
In 11 ABY, a task force of New Republic warships, including Rogue Squadron, was sent to the system to enforce several judicial verdicts and decrees made against KDY that directed them to clean up their operations and to detoxify the planet itself. Within minutes of their arrival, a task force of Invids led by the Invidious and Admiral Leonia Tavira herself arrived to obtain hyperdrives to sell to other warlords.
In the ensuing fleet action and dogfights, Corran Horn, then under the alias Jenos Idanian, provided a solution to the Invids that would allow them to withdraw sooner without bringing undue harm to the New Republic forces. Unfortunately, as he fought for his own life while maintaining cover, he inadvertently drew the attention of the Jensaarai to himself though later he would pass it off as Luke Skywalker having participated in the battle, leading the Rogues there.