[1] It was first formed during World War I, as an infantry division of the Australian Imperial Force and saw service on the Western Front in France and Belgium.

[28] The fighting around Passchendaele proved to be the division's last offensive actions for 1917 and they spent the winter months in the rear training, or undertaking defensive duties in reasonably quiet sectors of the line as they were reformed and brought back up to strength.

[31] The attack came, however, at the Somme and so on 24 March the division was transferred south to help stem the advance and defend the approaches towards the important railhead at Amiens.

[36] Following this the Australians were able to begin taking the initiative and throughout May they began to slowly recapture some of the ground that had been lost earlier as they undertook a series of Peaceful Penetration operations,[36] including the Second Battle of Morlancourt.

[38] On 8 August 1918, the Allies launched their Hundred Days Offensive around Amiens and the 3rd Division was tasked with leading the Australian Corps part in the attack.

Throughout September the Germans began to withdraw back towards the Hindenburg Line and the 3rd Division took part in the operations undertaken to follow them up and harass the rearguard.

[45] As operations continued throughout the month, casualties amongst the Australian Corps became critical and the decision was made to disband some of the 3rd Division's battalions and use them to reinforce the remaining units.

[48] On 2 October the majority of the 3rd Division was removed from the line for rest and reorganisation, although a number of its artillery batteries would continue to support the operations of the II American Corps until they were withdrawn.

Following the end of hostilities the demobilisation process began and as men were repatriated back to Australia, the division was eventually disbanded on 28 May 1919.

As a result, the Army's budget was halved and as the scope of the compulsory training scheme was scaled back, the authorised strength of each infantry battalion was reduced to just 409 men of all ranks.

[64] After 1936, however, the Army attempted to improve the conditions of service for its members and to reinvigorate the training program, while individual units began to undertake their own recruiting campaigns.

[71] Savige set about the task of preparing the division for combat and he began by removing officers that he did not think were physically fit enough or competent to lead in battle and replacing them with men who had gained experience in AIF units.

[77] The following month they were relocated once more, this time to Queensland where they undertook training exercises and defensive duties along the coast between Brisbane and Tweed Heads on the New South Wales border.

[82] Initially operations were limited to the area immediately surrounding Bulolo, but as the division became established the headquarters was shifted to Tambu Bay and brigades were pushed out towards Mubo, and the Komiatum and Bobdui Ridges, while defensive patrols were undertaken through the Wampit Valley, around the Bulwa and Zenag airstrips and towards the Markham River.

[84] Eventually Lae fell in September and soon afterwards, its elements were moved back to Port Moresby, before being sent to support the 7th Division's campaign in the Markham and Ramu Valleys and the advance on Madang.

Although this was later proved to be grossly incorrect, nevertheless the Allies believed that the Japanese formations in the area, despite being under strength, were still capable of carrying out effective combat operations.

However, in December 1944, 'B' Squadron, 2/4th Armoured Regiment, equipped with Matilda II tanks, arrived and subsequently took part in operations on the island attached to elements of the division.

[93] The 7th Brigade, supported by the 2nd Field Regiment,[101] was the first to commence operations, as the 9th Battalion launched a surprise attack in the central sector of the island upon a Japanese outpost at Little George Hill on 25 November.

The following month the battalion seized control of Artillery Hill, while the 29th Brigade began patrolling operations in the southern sector.

[102] Following the capture of Pearl Ridge by the 25th Battalion, the focus of the 3rd Division's operations on Bougainville was shifted on the northern and southern sectors.

Rotating his brigades, the division's commander, Major General William Bridgeford, advanced south from Torokina towards the Puriata river.

In early July, the 29th Brigade relieved the 15th and continued the advance and as they attempted to cross the Mivo, the Japanese launched a ferocious counter-attack upon the 15th Battalion which was turned back by desperate defence.

These patrols were resumed, however, in late July and into August, as isolated pockets of Japanese began to attack the 3rd Division's supply lines and support units.

[107] As preparations were made to resume the advance, the dropping of two atomic bombs on Hiroshima and Nagasaki and Japan's subsequent unconditional surrender brought the fighting on Bougainville to an end and a cease fire came into effect.

[109][110] During the division's campaign in Bougainville, one of its soldiers, Reg Rattey, earned the Victoria Cross for his actions during the fighting around Slater's Knoll.

[118] The following year the division conducted a live-fire exercise at Puckapunyal based upon the 4th Brigade and involving over 3,500 men, tanks, artillery, aircraft, and various supporting arms.

[126] The Australian Army's experiment with the Pentropic establishment did not last long, however, as it created a number of planning issues including lack of interoperability with other Western allies, none of whom used it.

[128] This highlighted the changing focus of Australia's military planning towards Regular forces, however, it had a negative impact upon the division as essentially it was forced to compete with the ARA for manpower and although some gains were made from men that chose to serve longer national service terms in the CMF to defer their service in ARA units, these were negligible and arguably of limited quality.

[129] When the national service scheme was ended following the election of the Whitlam government in late 1972,[130] the 3rd Division lost a large number of personnel.

[135][136] Nevertheless, in June 1991, following a force structure review, the 3rd Division was finally removed from the Australian Army's order of battle, and its remaining units were transferred to the command of the 4th Brigade.