Warning: Spoilers for The Mandalorian season 2 finale.
The Mandalorian season 2 featured a surprise appearance by Luke Skywalker, but it also included a cameo by another classic Star Wars character: Bib Fortuna. The character was first introduced in 1983's Return of the Jedi, which served as the final installment of George Lucas' original trilogy. The male Twi'lek was also seen in Star Wars: Episode I – The Phantom Menace. Though he was thought to have died in Return of the Jedi, The Mandalorian proved otherwise.
Fortuna grew up on Ryloth before climbing the ranks within the criminal underworld during the Galactic Republic. By the events of The Phantom Menace, Fortuna was working for crime lord Jabba the Hutt. Decades later, the Twi'lek was still serving as Jabba's right-hand man, considering he was present at Jabba's Palace on Tatooine when Luke attempted to rescue Han Solo with the help of Leia Organa, Chewbacca, and Lando Calrissian. When Luke killed Jabba's rancor, he along with Han and Chewie were sentenced to execution at the Great Pit of Carkoon. While Jabba and his allies watched from a nearby sail barge, Luke carried out an assault to free himself and his friends. The group also managed to kill Jabba before destroying the barge with the crime lord's followers still on board.
Despite Fortuna's presumed death in Return of the Jedi, he was confirmed to have lived through his brief appearance in The Mandalorian season 2 finale's post-credits scene. The scene revealed that Fortuna returned to Jabba's Palace and took ownership of the throne. Although he had fewer followers, Fortuna was still the figure in charge of the small criminal syndicate in operation. Fennec Shand eliminated Fortuna's servants while Boba Fett walked in, killing the Twi'lek once and for all. The Mandalorian didn't fully explain how exactly Fortuna survived the destruction of Jabba's sail barge, but Legends might provide a few clues.
What Happened To Bib Fortuna In Star Wars Legends
Bib Fortuna had a much more prominent role in Legends. According to 1996's Tales from Jabba's Palace from M. Shayne Bell, Fortuna survived the sail barge explosion in Return of the Jedi by escaping on a private skiff. He then traveled back to the Palace with the intent of taking over Jabba's position. There was a scuffle when it came to Jabba's possessions, but Fortuna won that battle until B'omarr monks emerged from the cellars. The mysterious figures then removed Fortuna's brain from his body and placed it in a spider-droid walker.
Fortuna was still able to communicate with another Twi'lek, orchestrating the collection of Jabba's treasure before ultimately having his brain planted in the body of the fellow member of his species. While that arc clearly wasn't followed in Star Wars canon, it's possible that The Mandalorian followed some of the Legends' explanation when it came to his survival. If Fortuna did escape on a skiff, it would have explained how he returned to the Palace to oversee what was left of the criminal organization.