The Muun Federation was a federation of worlds in the Outer Rim, during a time in which the galaxy was politically fragmented. The Federation existed alongside the Core Systems Alliance, Bothan League, Bespin Treaty Association and the numerous other interplanetary governments of the day.
After the presidency of Lars Ferril, during which the Muun Federation experienced unprecedented growth, Kan Xe became the new leader. Unlike his predecessor, Xe was greedy, power-hungry and looking for every opportunity to increase the federation's influence. A golden opportunity arrived when Chancellor Lopp Fey'la of the Bothan League proposed an alliance against the Core Systems. Xe eagerly accepted, beginning the Muun Federation's involvement in The Bothan War.
From the start, the war went poorly for the Federation. Stabbed in the back the traitorous Sith lord mercenary, Darth Naarin, the military faced countless numbers defections, as many joined the dark lords movement to replace the Xe administration with that of a puppet. To make matters worse, an attack force from the CSA arrived and outfought the outnumbered remnants of the Muun military.
Angry at the current government's handling of the war, the people and Congress voted to recall Kan Xe, as a special recall election would then occur. The winner of this election was Wit Zorit, who promised to bring an end to the war. But Xe didn't go out quietly. He gathered loyal forces and started an uprising against the administration that replaced his. Seeing this distraction as a last chance for power because of a quickly closing window of opportunity, Darth Torrent (Naarin's apprentice), launched an attack of Muunilist. No side was clearly winning this battle but all three factions were taking heavy casualties. In the end, the CSA attack fleet arrived in the system. Seeing that Zorit was less dangerous then the other two groups, the Core commander, Liak Piett V, organized a truce. The combined strength of the Muun Federation and Core Systems Alliance over-matched the other two groups and a victory was achieved, although Darth Torrent, now the master of the Sith order, was able to escape. After the battle, President Zorit declared that the Muun Federation's participation in the war was over and an armistice was signed soon after.