It seems as if the galaxy will never know what a long lasting period of peace is like. Only two years after the Second Galactic Civil war ended the galaxy is already spiraling down into conflict again, ever faster. Mere days might be left until war once more ravages between the stars. But let us start by recounting the events which led up to what is happening right now. Knowing the present alone is useless, because without knowing the past it is impossible to understand.
Some time before the end of the last war the Imperial Head of State, Grand Admiral Gilad Pellaeon, was assassinated by Tahiri Veila who was acting on behalf of Colonel Jacen Solo of the Galactic Alliance who by now was known as Darth Caedus. Caedus was eventually slain by his twin sister Jaina and Veila redeemed by the young Jedi Ben Skywalker, but the damage to both the Empire and the Galactic Alliance had been done already, both in need of a new leadership now.
It was eventually agreed that the former Imperial Admiral Natasi Daala would become the new Chief of State of the Galactic Alliance while Jagged Fel, a human who had been raised in the Chiss Ascendancy, would lead the Empire from then on. Rebuild efforts took place and proceeded at a promising pace while first reunification talks were held to prepare for an eventual reunification summit with the goal to merge the Galactic Alliance, the Empire, and the Hapes Consortium in order to unite the galaxy in peace.
Scheming within the Empire and more importantly Daala's course against the Jedi Order, which seemed more and more irrational, quickly began to undermine the efforts made at the summit however. Daala, most likely in an attempt to win favors among the Imperial Moffs, decided to act against the Order to bring it into line. Quite soon her actions began to appear overzealous though.
Her first step was to charge Grand Master Luke Skywalker for negligence of duty when he did not foresee and prevent Colonel Solo's fall to the dark side. Shortly after he was found guilty and exiled, Daala passed a directive that required every Jedi to be accompanied by a supervisor, though eventually she was forced to take back the directive. In retaliation Tahiri Veila was charged for the assassination of Pellaeon, and when the Order proved to be unwilling to cooperate on other matters Daala first authorized a raid on the Jedi Temple by Mandalorians and later on used Mandalorian forces to lay siege to the Temple to force the Order into submission.
Daala's popularity went down immensely, especially after the commander of the siege killed an unarmed Jedi Apprentice who was sent to negotiate in cold blood to make a point. Slave uprisings all over the Galactic Alliance and beyond caused her additional problems and she once more decided to rely on the Mandalorians to put down the unrest and also began censoring the press. Furthermore, even though the jury found Veila not criminally liable in the end, Daala decided to have her executed nonetheless.
The Imperial Head of State decided to offer asylum to the Jedi Order, but only a small group of Jedi who did not want to keep following the course of peaceful resistance accepted the offer, the only notable member of the group being Jaina Solo. Storm Commandos however rescued Veila moments prior to her execution and she fled together with Solo's group aboard an Imperial Star Destroyer, which was ironically named after the man she had assassinated.
Relations between the Galactic Alliance and the Empire became difficult after this incident and reunification talks where halted. Daala ordered the Jedi Temple to be captured which lead to severe losses among both Jedi and Mandalorians, most Jedi however managed to drop of the radar, effectively shattering the Order. The largest group of Jedi was the one that had accepted Fel's offer, about fifty Jedi and their families who now lived on Bastion.
A form of cold war between the Galactic Alliance and the Empire ensued, with a number of Moffs covertly conspiring with Daala to remove Fel from power. Anti-Jedi sentiments still existed in the Empire and when Fel married Solo a number of uprisings took place. In an attempt to ensure the unity of the Empire Fel and his wife claimed the titles of Emperor and Empress, turning the Empire into a monarchy once again.
Assassination attempts on their lives by both scheming Moffs and Daala's agents as well as her own feelings of guilt because of her own assassination of Pellaeon led Veila to propose the idea of a group of Imperial Knights who would serve as a bodyguard for the Emperor and his family. The idea was accepted and Veila tasked with drafting and training the first Imperial Knights. Her candidates were the children of some of the Jedi who had found asylum within the Empire and a number of young citizens of the Empire who proved to be Force sensitive.