In the aftermath of the Alsakan Crisis, the Republic set out to expand into the Mid Rim, causing tension with the Hutts of the Outer Rim Territories who felt it was the prelude to an invasion. This tense standoff ultimately led to a peace conference on Iridonia, which resulted in an all-out battle that started the war. The war continued on for two years and saw a number of leadership changes on both sides.
By the end of 12,978 BBY, the Hutts had gained a significant amount of advantages against the Republic, despite a galaxy-wide trade embargo enforced by the Republic. The Galactic Senate had been decimated in a Hutt attack, and a number of Republic and Jedi forces were lost during the concurrent Battle of Ando Prime and Battle of Yag'Dhul. However, internal civil discord within the Empire directed towards Hutt EmperorTusa Ujalli Hai caused Tusa to propose a peace treaty that would end the war. The Republic agreed to the Hutt condition that the Hutts be declared the victor of the war and signed the treaty. The peace ultimately gave way to further conflict, and the Second Hutt War began in 12,973 BBY.