The Ishval Civil War (also known as the Ishvalan War of Extermination) was a major event.
The people of Ishval had clashed several times with the central government of greater Amestris in the past and had been annexed to a region in the southeast of the nation, near the Eastern Desert. Though religious and cultural tensions continued between Ishvalans and Amestrians, relative peace had been achieved between the two until 1901, when an Amestrian soldier "accidentally" shot and killed an Ishvalan child, this soldier was actually Envy in disguise, and the killing was deliberate.
The area exploded in a storm of riots and protests until the situation had become an all-out civil war, causing massive casualties on both sides. Though the Amestrian Military had the Ishvalans outnumbered by far, Ishvalan rebels were able to keep the conflict going due to a steady supply of munitions from the neighboring country of Aerugo, which aided the rebels in order to weaken Amestris' southern border for their own gains. Thanks to their new weapons and skill at guerilla warfare, the Ishvalans managed to stalemate the Amestrian military forces.
The fighting continued to spread until the entire East Area of Amestris had become a war zone. In 1908, a full seven years since the conflict had begun, Amestrian Führer King Bradley issued order 3066, sending State Alchemists into the front lines to act as human weapons. This decision decisively, and horrifically, ended the war with the territory of Ishval being occupied by Amestrian soldiers and the surviving Ishvalans spread throughout the country as refugees.
As a result of the devastation unleashed on the Ishvalans, their entire race was nearly wiped out with the survivors driven from their homes in Ishval. This war also took its toll on Amestris. Before the State Alchemists were called into action, the entire eastern area of Amestris was made into a war zone. Resembool was bombed by Ishvalans causing its growth to be perpetually stunted. However, the toll it took was more mental and emotional than physical. This war also gave a note of infamy for State Alchemists for their horrific part in the massacre.
In the aftermath, many State Alchemists relinquished their certification due to deep regrets for their actions. Tim Marcoh was guilt-stricken with creating the Philosopher's Stone to win the war, at the cost of many Ishvalan lives. This caused him to take his research and the stone and go into hiding. Major Alex Louis Armstrong suffered a massive emotional breakdown for claiming innocent lives. Another state alchemist, Isaac McDougal was so mentally damaged by his crimes in the war, that he became a traitor to Amestris. Roy Mustang is driven by his guilt over his own actions, seeking to reform the entire nation, citing it as the only way he can justify taking his next breath.
Fessler, a general with reckless leadership skills that cost the lives of many of his men, was shot and killed by Grand. Kimblee, a psychopath, became obsessed with the stone and later killed several of his superior officers and was imprisoned for it. Grand and Commache would become victims of Scar, a vengeful Ishvalan serial killer. Commanche, having lost his left leg during the war continued blaming the Ishvalans, and swore revenge.
Still, the civil war greatly benefited the Automail industry. During the war, numerous survivors suffered amputations and caused them to get automail as prosthetic limbs. Although Pinoko Rockbell regretted the loss of her son and her daughter-in-law, was nevertheless grateful for the profit she made in relation to the war - the bitter irony not being lost on her.