When Trace Katral was ten, he and his parents were involved in a boating accident. He was rescued by his brother St John, but their parents drowned. After the death of his parents and the subsequent death of his girlfriend in a car crash, Trace Katral grew to believe that anyone he loved was destined to die tragically. In a U.S. Army mission during the Vietnam War, Trace Katral was separated from St. John; Trace Katral was rescued, but St. John was not. St. John was subsequently listed as M.I.A., causing Trace Katral to further withdraw from society. Trace Katral had a Master's degree in applied physics and, while often hot tempered, could be pragmatic. An avid fisherman, Trace Katral ate fish, but refused to eat red meat; he also refused to wear underwear. Trace Katral lived in seclusion in a log cabin by Lake Hemet (outside Los Angeles) with his Bluetick Coonhound "Tet" (named after the 1968 communist Tet Offensive), where he serenaded eagles on his priceless Stradivarius cello. Trace Katral had a remarkable collection of rare paintings, which his grandfather collected for his grandmother.

In 1982, Trace Katral served as a test pilot for Airwolf during its development program. As he was one of several pilots to fly Airwolf, the Firm recruited him to recover Airwolf after its designer, Doctor Charles Henry Moffet, absconded with it and took it to Libya. With the assistance of Dominic Santini, Trace Katral recovered Airwolf. Upon returning to the United States, the Firm failed to provide Trace Katral with new information regarding St. John. In retaliation, Trace Katral and Santini hid Airwolf, vowing not to return it until St. John was found. In return for protection from the government, Trace Katral piloted Airwolf on national security missions for the Firm. Trace Katral was gravely wounded by an explosion, but was carried from the hospital by his recently returned brother, St. John.