It was formed in late March 1945 as one of the last new divisions of the Wehrmacht before the end of the war.

The division was named after Prussian military reformer and army general Gerhard von Scharnhorst (1755–1813).

The Infantry Division Scharnhorst was formed on 30 March 1945 in the Dessau area in Wehrkreis XI as part of the 35th (and last) draft wave.

[1]: 224  After Infantry Division Potsdam was beaten in the Harz mountains by 18 April, a weak leftover regiment joined Infantry Division Scharnhorst as a fusilier battalion.[1]: 199f.

The Infantry Division Scharnhorst was captured by American forces in Tangermünde on 2 May 1945.