The division was formed on 9 May 1937 in Misrata in Italian Libya and named for the Libyan city of Sirte.

The division's lineage begins with the Brigade "Ancona" established on 1 August 1862 with the 69th and 70th infantry regiments.

During the Italian invasion of France from 10-25 June 1940 the Sirte was deployed along the French Tunisian-Libyan border.

At the start of the British Operation Compass on 9 December 1940 the Sirte was deployed along the road between Gazala and Fort Capuzzo.

By 7 January 1941, the division was encircled by British forces in Tobruk and subject to heavy bombardment.