The Diana Institute, located in Raelin, was founded in OE 56 to study the emergent phenomenon that eventually came to be known as Newtypism. At its founding, it was an independent research institution that found itself struggling for funding; however, as the nascent Newtypes began to develop, and their abilities could be better quantified and utilized, they began to receive federal funding from the Alliance. Today, the Institute is a widespread, monolithic institution that is closely intertwined with the military, with branches in most Lunar cities and representatives in every Side. Its research is much broader in scope, dealing not only with Newtypes, but with Ki Fighters as well, and--to a much lesser extent--Coordinators. In addition, it has subsumed a number of other military research laboratories, further spreading its influence to other fields; an excellent example of this is the neuroptic tracer technology developed for Lt. JG Damien Marius, and utilized to great effect in the the UL-3 Tempest prototype mobile weapon.

However, it is nonetheless known to the public only in the form of rumors, and even hidden from most rank-and-file soldiers. Diana operates under a veil of heavy secrecy; most of its projects are known only to the researchers performing them, the heads of the Institute, and the Supreme Commander of the Alliance military--and not even the latter, in all cases. After the initial testing and training phases, once an individualized program is initiated for subjects, they only rarely encounter each other at the Institute, and are not permitted to speak with others about their experiences there--a further precaution, enforced by heavy consequences that have been shown on more than one occasion to be no mere empty threat.

Every soldier in the Alliance military has dealt with a Diana representative at least once, albeit usually unknowingly; the testing that new recruits undergo upon entering Halsey or any other Alliance military academy is performed by a Diana researcher, with the intention of discovering latent potential in recruits. Any recruit with such potential is brought under the Institute's wing, and, in addition to their usual training and education, they are trained in order to develop their potential. Newtype soldiers in particular keep in frequent contact with Diana, with testing and experimentation being performed on them with varying degrees of frequency; most go in twice a year, while the most promising are taken in once a month or more.

The Institute works closely with IsoTech in developing prototype units built for Newtypes, and occasionally particularly promising Ki Fighters as well. Subjects with particularly noteworthy potential are offered prototypes geared towards their particular strengths; recent examples include the Folie project, intended for Lt. Nahia Charaiz, and the Formula Final, built for Lt. Cmdr. Russell Chapman.

However, the Institute is not without its darker side. Experimentation is at the heart of the Institute's work, and they generally do not consider themselves to be particularly strongly bound by ethics. Rumors about the artificial newtypes and extendeds the Institute produces abound, and subjects are rarely informed of the full details and ramifications of the procedures they undergo; informed consent is not generally considered to be an issue.

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