The game begins with the protagonist waking up from unconsciousness on an asteroid mining facility. During this time, the Jedi Order has been almost completely wiped out by the Sith.

Knights of the Old Republic II starts five years after the events of the first game and follows the story of The Exile, a Jedi Knight who was exiled from the Jedi Order. The plot first started being written before the original Knights of the Old Republic was released, and development began in October 2003, after BioWare offered Obsidian their Star Wars license due to being confident in their previous work. The game uses the Odyssey Engine, which was originally used in Knights of the Old Republic. Like its predecessor, it is set in the Star Wars universe 4,000 years before the events of the film Episode I: The Phantom Menace and is based on the d20 System developed by Wizards of the Coast. It is the sequel to BioWare's Star Wars: Knights of the Old Republic and was released for the Xbox on December 6, 2004, for Microsoft Windows on February 8, 2005, and OS X and Linux on July 21, 2015. Star Wars: Knights of the Old Republic II – The Sith Lords is a role-playing video game developed by Obsidian Entertainment and published by LucasArts.

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