It was formed in June 1943 using a brigade from the Home Guard of the Independent State of Croatia (Croatian: Nezavisna Država Hrvatska, NDH) with the addition of a German cadre.

It fought mainly in the western areas of the NDH, and was involved in the attempt to kill or capture the leader of the Partisans, Josip Broz Tito, in May 1944.

Severely depleted by desertion, the division withdrew towards the Reich border in the early months of 1945, eventually surrendering to the Partisans on 10 May 1945 near Brežice in modern-day Slovenia.

[2] It was built around a cadre of 3,500 German troops, and 8,500 soldiers of the 7th Mountain Brigade of the Croatian Home Guard, the regular army of the NDH.

[8] The first task of the division was to secure the area north and northwest of Mostar, which contained important bauxite reserves needed for the German war effort.

[10] In early July, a search and destroy operation was conducted west of the Kupres–Bugojno–Jajce road, during which local Chetnik units began cooperating with the division.

[13] On 5 August 1943, Generalleutnant (Major General) Eduard Aldrian became divisional commander replacing Zellner, who was transferred to the Army Headquarters officers' reserve pool (German: Oberkommando des Heeres Führerreserve).

[15] There were a range of factors encouraging desertion, including Partisan propaganda and infiltration, the influence of the Croatian Peasant Party, and reverses suffered by the Germans in North Africa and at Stalingrad and elsewhere on the Eastern Front.

[19] That month, the division concluded a collaboration agreement with the 260-strong Chetnik detachment of Mane Rokvić, who was in control of an area which included parts of both western Bosnia and Lika.

Following up reconnaissance by the Croatian 3rd Mountain Brigade, the objective of the first day was to thrust 10 kilometres (6.2 mi) eastward from Bosanski Novi to secure heights east of the Japra, and this was achieved against light resistance.

The entire force, less two companies and the tanks which remained north of the river, consolidated on heights south of the Sana, and throughout the night fought off several large Partisan assaults which were supported by heavy mortar fire.

The main body then fought its way east to Prijedor with covering fire provided by the two companies and tanks remaining on the northern bank, with the majority arriving on 29 December.

[28] In late December 1943, Hühnewaldt was tasked with the defence of Banja Luka, the second largest city in Bosnia, which had been under Partisan pressure for several days.

That evening the Partisans renewed their assault, overrunning the hospital and massacring the German sick and wounded, and capturing the railway station.

The Partisans quickly withdrew and the Ustaše Militia and Sicherheitsdienst (Security Police) subsequently executed all armed personnel captured in the city.

[30] Following the battle, the division cleared and secured the area around Banja Luka, and in February 1944 Hühnewaldt was replaced as commander of the 383rd Regiment by Major Ristow of I/383.

[33] The division formed a significant part of the ground force used by XV Mountain Corps in Operation Rösselsprung, which was launched on 25 May 1944, with the objectives of killing or capturing the Partisan leader Josip Broz Tito, and destroying his headquarters at Drvar.

The second thrust consisted of a battalion group from the division, which was to set out at 5 am on 25 May from Lapac and drive east through Kulen Vakuf to capture the crossroads at Vrtoče.

There was unexpected resistance from strong Partisan forces along their axes of advance, and there was very poor communication between the various elements which resulted in lack of coordination of their movements.

Kampfgruppe Willam was unable to overcome the resistance of the 2nd Lika Brigade,[35][36][37] and to force its way through to Drvar until the paratroopers had been relieved around midday on 26 May by a stronger column attacking from the direction of Bihać.

The division withdrew from Gospić via Donji Lapac, Bosanska Krupa, Bosanski Novi and Kostajnica where most of its remaining Croatian soldiers were separated out from the German elements and probably dispersed.

The remainder continued its withdrawal via Sunja, Sisak and Zagreb to Brežice in modern-day Slovenia, where it surrendered to the Partisans at the village of Raka on 10 May 1945, and the remaining Croat soldiers left the division.