Sword Squadron functioned as a starfighter squadron within the structure of the Imperial Navy. During the Battle of Kelrodo-Ai, it was a component of the 77th Air Wing, organized into Blade Flight, Dagger Flight, and Scimitar Flight, and utilized Alpha-3 Nimbus-class V-wing starfighters as its primary craft. However, as the Galactic Civil War unfolded, the squadron transitioned to using TIE/LN starfighters.