Existing units were renamed, and new ones formed in order to get the new division to actual divisional strength, although it remained well under even when it moved to France in September 1943.

Soon after its creation in February, the division engaged with Norwegian Partisans near Rjukan, and then in late August sailed to Denmark to take part in Operation Tivoliasflug, the disarming of the Danish Army.

After being transferred to Northern France in September/October for training exercises, the division was sent east, and eventually arrived on the Eastern front (central sector) in early November 1943.

Being thrown straight into the battle by the High Command, the 25th Panzer Division drove forward but was halted by the advancing Soviet 7th Guards Tank Corps that had just captured Zhitomir.

These were battle hardened, full-strength units that drove north then west to retake Zhitomir where the 25th became involved in heavy fighting.

In April, the division was transferred to Vienna in Austria, and then posted north of the Danube river to protect the Austrian oil fields.

Down to 45 operational Panzers and manpower falling rapidly everyday, the division reluctantly fought on at Prottes, Hohenruppersdorf, Martinsdorf, and Schrick, eventually ending the war in Austria.