The Third Battle of Endor was another climatic battle in the Endor system, this time a terrible defeat for the Alliance. Recovering from this devastating battle took the Rebellion almost a year, the battle propelling Admiral Iaius into the position of Emperor. It also signified the beginning of the Shattered Galaxy Crisis, which would ravage the galaxy for several months.
After the first Battle of Endor the Empire was crippled, having lost its Emperor and flagship, and much of its command staff. The political establishment and military split, and the Alliance gobbled up hundreds of systems with little effort. The Imperial Civil War devastated the Empire, resulting in the Rebellion capturing key territory in the Core and Colonies, mounting successful campaigns in the Inner Rim and Mid Rim. A year after Endor the Alliance had pushed the Empire from half of the galaxy, and the political in-fighting within the Empire still continued, fought between the Imperial Ruling Council and Central Committee of Grand Moffs, with warlords such as Krennal, Delvardus, Zsinj, Teradoc and Harrsk adding to the confusion. The Pentastar Alignment walled off a portion of the Outer Rim, absorbing much of the Empires rimward strength.
It appeared as if the Empire was finished.
The emergence of Lord Shadowspawn changed all that. Uniting aspects of the Imperial military at Mindor in 5 ABY, Shadowspawn proceeded to launch a series of devastating raids which drove the Alliance from the Inner Rim. The other Dark Jedi within the Empire, long weakened in their power by the death of the Emperor, rallied around Shadowspawn, reconquering key parts of the Core and Colonies.
The Alliance and Mandalorians rallied, fighting the Battle of Mindor in 5.5. ABY, defeating Shadowspawn. The Dark Jedi began pushing stewardess Iceheart for more power, and it became apparent the Empire may split again. Understanding this, the Alliance gathered in the Endor system, intending to draw strength from their victory there before launching for their lost territory.
However, Imperial command had not sat back while the Dark Jedi and Shadowspawn led the campaigns. Pushing along the completion of the Olympus and the removal of the superlaser from the crippled Eclipse to a habitation sphere orbiting Coruscant, Admiral Iaius kept his eye on the prize; the destruction of the Rebellion.
As the leaders of the Alliance gathered at Endor aboard the Independence to inaugurate the latest chapter of their struggle, Iaius struck, bringing the Olympus, the new 'Death Star' and forty Star Destroyers to engage the Alliance. In a whirlwind of movement, the Alliance struck back, focusing their efforts on the new Death Star. This allowed the Admiral to systematically destroy the Rapid Response Task Force which had plagued the Empire, and to cripple the Independence, capturing Mon Mothma and Admiral Ackbar.
The Rebellion, their heart carved out and their mind captured, were routed, but not before they managed to destroy the Death Star, but that victory meant nothing to the Empire. Admiral Iaius returned to Coruscant with a massive victory, and the Rebellion had been decapitated - only the survival of Leia kept the Alliance intact.
The victory at Endor allowed Admiral Iaius to ascend to the throne as Emperor with a few shrewd alliances, the population practically demanding he be crowned. The Dark Jedi had their power muted as the Emperor chose the Imperial Knights to be his protectors and fist, completely nullifying the strength the darksiders had gathered. United under Lord Garonnin, who had reclaimed Korriban for the Dark Jedi to gather around, they seceded, taking elements of the Imperial military and forming alliances with the other warlords, forming a new Sith Empire in the Outer Rim.
The Alliance, for their part, retreated to the territory they still held in the Mid and Outer Rims to lick their wounds and fill the spaces left in the leadership, political and military. Leia formed a triumvirate, and pushed to transform SpecForce into a new Jedi Order, her brother having departed from the Alliance after Mindor. The Alliance began recovering strength at Mon Calamari, and prepared a counter-attack - though unsure of who that would be targeted against.
The galaxy had been shattered... and the struggle began anew.