The Italian army group in North Africa was routed by the British Commonwealth Western Desert Force in Operation Compass 9 December 1940 – 9 February 1941 under General Wavell.

Eighth Army launched Operation Crusader on 18 November 1941, which forced Rommel to retreat to El Agheila by the end of the year, allowing the British to re-occupy Cyrenaica and lift the siege of Tobruk.

Over-stretched supply lines and the urgent need to assist the Axis forces around Tobruk, which were being hard-pressed by XIII Corps, obliged them to withdraw.

On returning to Sidi Rezegh, the division lost Major-General Johann von Ravenstein, who was captured while on reconnaissance during 29 November.

21st Panzer was used to sweep behind the British XIII Corps, where it engaged in an intense combat with the 2nd New Zealand Division at the Battle of Mersa Matruh.

Rommel made a last effort to break through the British positions on 31 August 1942 at the Battle of Alam el Halfa, but the Germans were again repulsed.

To compound German problems, the Anglo-Americans landed in Morocco and Algeria during Operation Torch and Panzerarmee Afrika, as it was now called, was threatened with annihilation, as it would be caught in a vice.

By the time it reached Tunis, 21st Panzer had ceased to exist as a cohesive unit and was split up into Battle Groups (Kampfgruppen) Pfeiffer and Gruen.

The new division's commander was Oberst Edgar Feuchtinger[2] who was promoted to Generalmajor on 1 August 1943 and Generalleutenant (equivalent to Major-General) exactly a year later.

This was largely fitted out with captured French half tracks and light tanks that had been armoured and up-gunned by a mechanical engineer by the name of Alfred Becker.

On 3 July a German report stated the following number of enemy tanks destroyed by 21st Panzer according to weapon used: Pz: 37, Sturmgeschütz: 15, Mot.

[7] Between 6 June and 7 August, British reports based on captured vehicles suggested that about half of the German tanks knocked out were because of armour-piercing ammunition; the rest by a roughly equal combination of infantry anti-tank weapons, artillery, aircraft rockets or cannon, or were abandoned/destroyed by their crews.

[7] The last major action the 21st Panzer took part in on the Western Front was the stubborn resistance it gave the British Guards Armoured Division during Operation Bluecoat, on 1 August 1944.

[7] In December, Rundstedt decided not to commit the 21st to offensive actions in Operation Wacht am Rhein, leaving it to provide flank cover, which probably saved it from total destruction.

[9] From January 7 to 21 Col Hans von Luck's 125 Regiment of the 21st took part in Operation Nordwind, aiming to sever the American supply line to Strasbourg.