This division was formed in South Africa on 23 October 1940[1]: 68  with its headquarters in Pretoria.

The 3rd Infantry Division as a whole did not go into combat, but its 7th Motorized brigade group participated in the 1942 Invasion of Madagascar.

The division organised and trained the South African home defence forces, performed garrison duties and trained and supplied replacements for the 1st and 2nd Divisions deployed to East Africa and later to the Western Desert.

However, one of the division's constituent units, the 7th Motorised Brigade, did take part in the invasion of Madagascar.

Major General Hermanus Botha was the commander of the division from 23 August 1940 until its redesignation.