The Graveyard of Lost Ships was a collection of starships which were drawn into orbit around a collapsed dwarf star by Doctor Arakkus. The Graveyard consisted of five interconnected rings of ships all of which had been lured to the Graveyard with distress calls, in an attempt to make others suffer as he had suffered. The ships which were drawn to the Graveyard by the gravitational pull of the dwarf star. Incapable of escaping its grasp, the ships slowly began to plunge into the star, while most of the crews went insane and committed suicide.

The Graveyard was destroyed before the Battle of Hoth when Han Solo, Luke Skywalker, and Chewbacca were captured aboard the Millennium Falcon. While trying to help Arakkus escape the doomed rings, the group unintentionally set off a series of negatron charges, placed throughout the Graveyard by Arakkus. This destroyed the connected ships and brought about Arakkus's death.