Theed Theed was the capital city of the Naboo , a society of human s who lived on the planet of the same name . It was home to the Royal House of Naboo ' s palace , which was situated on the Palace Plaza . Other points of interests included the Palace Courtyard , the power generator , and the headquarters of both the Royal Naboo Security Forces and the Naboo Royal Space Fighter Corps . Theed also housed several universities . Description . The city of Theed was located on the rich , green grass plains of Naboo , to the planet ' s north where several other larger cities resided . It was found forty kilometer s from the Great Grass Plains . Virtually a floating city , Theed nested on the banks of the mighty Solleu River , which led into a network of underwaterways , tributaries , and caves created by the unstable plasma energy in the planet ' s core , and ultimately to areas such as Lake Paonga and the Gungan city of Otoh Gunga . The city was also built over a vast plasma source located beneath the cliff edge , which , when mined by the Naboo , provided Theed with more energy than it required . The Theed Royal Palace was situated on a tremendous cliff in the city ' s central district , offering panoramic views of the sweeping countryside below . The Theed Hangar was connected to the palace , and itself to a power generator complex which utilized underground conduits to mine the planet ' s plasma supply . Hidden underground passages connected the palace , hangar , and other important locations in the city . The Theed Funeral Temple resided in a tranquil area of the city , and hosted traditional Naboo funeral rites that saw the ashes of their cremated dead cast into the Solleu . Theed was a cultured city with elegant architecture and a unified , harmonious style borne from rebuilding after a troubled ancient past . Its domed buildings maintained a handcrafted aesthetic , although areas such as the sleek and mechanistic Theed power generator , a popular city attraction hosting regular tours , stood in stark contrast to this style . History . The city of Theed was founded eight hundred years prior to the Battle of Naboo by settlers fleeing revolution on their homeworld . These colonists chose to found their settlement on a cliff edge , in order to protect it from attack , and became successful commercial farmers . Their prosperity saw the rise of a leisure class in Theed , whose energies resulted in a focus on education and the fine arts across the cultured city . Although Theed endured upheavals in its ancient past , rebuilding efforts united the city into an harmonious style of elegant , domed architecture and a sophisticated culture . For centuries , Theed was powered by an energy supply from small , outlying plasma mines , though the construction of the Theed power generator saw an increase in efficiency , and a yield of more plasma energy than the city required . In 32 BBY , Naboo and its cities were invaded by the Droid Army of the Trade Federation , which landed under the cover of night and marched on Theed the following morning . The citizens were taken by surprise , and many were captured after Queen Padmé Amidala continued to strive for a peaceful resolution to the crisis . Viceroy Nute Gunray oversaw the arrest of Amidala and her government , and took up residence in the Theed Royal Palace for the duration of the Federation ' s occupation . With citizens taken to detention camps and its streets sealed , Theed became a ghost town populated only by patrolling battle droid s . Amidala was saved by Jedi Qui - Gon Jinn and Obi - Wan Kenobi , and though her petition for aid to the Galactic Senate fell on deaf ears , she returned to Naboo with a plan to retake her city . While Captain Panaka instructed underground resistance movements to infiltrate key locations such as the hangar , Amidala led a team to recapture her palace , and force Viceroy Gunray to return power to her . The effort was ultimately successful , and the droid forces were driven from Theed . A victory parade was held after the battle to celebrate the return of peace , and to commemorate the unification of the Naboo and the Gungan s .