It was first commanded by Major-General Roy Urquhart, and had its divisional headquarters in London.

[1] It was raised in 1947, to compensate for the loss of the 1st Airborne Division, which had been disbanded in 1945 and the 6th Airborne Division which was to be disbanded in 1948.

The number "16" was used in recognition of the two wartime airborne divisions.

Then in December 1955, the British Secretary of State for War in an announcement on the future of the Territorial Army, proposed cutting the Territorial Battalion, The Parachute Regiments by five.

The reduction in strength led to the disbandment of the division in 1956, leaving the 44th Independent Parachute Group as the only British reserve parachute formation.