It was formed in January 1940 by renumbering the 10th Division in the hope of convincing the Soviets that it had been replaced by fresh troops.

The unit was commanded throughout the rest of the Winter War by Major-General Einar Vihma.

The 7th Division was formed in January 1940 at Taipale, during the Winter War, the defence against the Soviet invasion.

It was decided to renumber the division in the hope of convincing the opposing Soviet forces that it had been replaced by a fresh formation.

[1] The unit was commanded by Major-General Einar Vihma from 9 January 1940 to the end of the Winter War with the March 1940 Moscow Peace Treaty.