In 2330, House Kurita's expansionist Draconis Combine invaded the Principality of Rasalhague, subduing it only after more than three decades of guerrilla war. The Rasalhague Military District remained the most restive province of the Combine, as its original Scandinavian inhabitants resisted assimilation into the Japanese-dominated culture of their Kuritan conquerors. In 3004, a Rasalhagian bodyguard assassinated Coordinator Hohiro Kurita. During the Fourth Succession War, many Rasalhagians greeted the Lyran Commonwealth troops as liberators and helped them to capture many Rasalhague worlds before the war's end in 3030. However, Lyran Duke Selvin Kelswa wanted to retain the conquered planets in his Tamar Pact, and his heavy-handed treatment of their people thoroughly alienated them.
As part of Operation Rosebud, Primus Myndo Waterly of ComStar convinced Theodore Kurita of the advantages of granting Rasalhague independence. It would relieve the Combine of its most rebellious citizens, create a buffer state on the border with the Commonwealth, pressure the Lyrans to disgorge their Rasalhagian conquests to the new republic, and perhaps inspire secessionists in the Lyran Isle of Skye. She also promised him military equipment from ComStar's secret stocks in exchange.
Rasalhague's proclamation of independence on March 13, 3034 was quickly recognized by ComStar and the Draconis Combine. Some Kuritan troops refused to obey Theodore's orders, but he crushed them in the Ronin War. As foreseen by Waterly, Lyran ruler Katrina Steiner turned over captured Rasalhague planets to the Free Rasalhague Republic (FRR). The new state sought to appease both the Commonwealth and the Combine through scrupulous neutrality, even adopting a policy of equal trade.
However, the gravest threat to Free Rasalhague's precarious independence would come not from these two great powers, but the unexpected Clan invasion of the Inner Sphere. Most of the FRR was overrun by Clan Wolf and Clan Ghost Bear, before the Clan advance was halted in 3052 by the intervention of the ComGuards. The rump state that survived became a virtual protectorate of ComStar.
Meanwhile, the Ghost Bears pursued good relations with their subjects, creating the Ghost Bear Dominion. In 3103, the holdout Free Rasalhague Republic merged with the Ghost Bears to form the Rasalhague Dominion.