The League of Non-Aligned Worlds was founded in 2215. The main goal was to prevent a Centauri invasion into the League members territories. The first two members were the Drazi and the Pak'Ma'Ra. Soon after them the Brakiri, Vree, Gaim and some other races joined. Up to 2220 the League was only a informal organization but this changed with the rising number of Raider attacks and rumors of a war against the Dilgar.

The Dilgar began attacking League members in 2230 forcing them to fight together to have at least a small chance of surviving. But even the combined forces of all members were not enough to stop the Dilgar. Therefore the League asked the other major players in the galaxy for help. In 2231 Earth Alliance forces joined the League of Non-Aligned in fighting against the Dilgar. The war was won in just over one year but a high price was paid.

The Legaue was reformed after the war against the Dilgar. All members sent their representatives to a governing council which set the economic and political policies for interaction between the members. This council was also the "combined representative" in the Advisory Council at Babylon 5, giving the League members one combined vote.

Any race was allowed to join the League but only the smaller races accepted this offer. The "Big 5" (Humans, Minbari, Centauri, Narn and Vorlons) chose not to join the League.

In 2260 the Shadows managed to drive a splinter between the members of the League. They offered protection and territory to some League members when they would attack the other members of the League. This nearly resulted in the dissolution of the League of Non-Aligned Worlds. All League members joined the Army of Light and later the Interstellar Alliance after the Shadow-War.