Palau was the headquarters of the Japanese command in Micronesia and was heavily fortified by the Japanese in the years leading up to WWII in the Pacific. Malakal Harbor was a major forward supply base for Japanese shipping.

On March 31, 1944 U.S. dive-bomber strikes from aircraft carriers Yorktown and Bunker Hill, of Carrier Task Force 58 destroyed over 50 warships and airplanes of the Japanese Imperial Forces, making Palau's western lagoon their final resting place.

Most of the wrecks are located within a few minutes of Sam's Tours dive center and remain in excellent condition for diving. Each year in March, Sam Scott of Sam's Tours hosts Palau Wreck Week to mark the anniversary of the sinking of the Japanese fleet.