The Finnish Supreme headquarters ordered the foundation of an armoured division on 28 June 1942 and the actual foundation was on 30 June 1942. The division consisted of the newly formed Armoured Brigade and the old (1st) Jaeger Brigade. The Cavalry Brigade was also part of the division until January 1943. The division artillery consisted of the 14th Heavy Artillery Battalion. The division commander was Major General Ruben Lagus. During most of the war, the division was located at Petrozavodsk, but in the spring of 1944 it was moved to the Karelian Isthmus to form the reserve of the headquarters.

• Battle of Kuuterselkä, Continuation War, June 1944
• Battle of Tali-Ihantala, Continuation War
• Battle of Vuosalmi, Continuation War, July 1944
• Battle of Rovaniemi, Lapland War, October 1944

• HQ of the Armoured Division
  • Armoured Brigade
    • 1st Armoured Battalion (T-26, T-26E), Armoured car company with FAIs and BA-10s
    • 2nd Armoured Battalion (T-26, T-26E, heavy company with KV-1 heavy tanks, T-28 and T-34 medium tanks)
    • Armoured AA Battery (Landsverk Anti II self-propelled anti-aircraft guns)
    • Assault Gun Battalion (StuG IIIG)
    • Armoured Training Battalion (older types and a few T-26s)
  • Jaeger Brigade
    • 2nd Jaeger Battalion
    • 3rd Jaeger Battalion
    • 4th Jaeger Battalion
    • 5th Jaeger Battalion
    • Armoured Jaeger Battalion (towed 50mm Pak 38 and 75mm Pak 40 anti-tank guns)
  • 14th Heavy Artillery Battalion
  • 6th Signals Battalion
  • 2nd Pioneer Battalion
  • Separate Armour Company (BT-42 assault guns)

The Armoured Division was disbanded during the Lapland War on 30 December 1944.

• Jäntti, Lauri: Kannaksen suurtaisteluissa kesällä 1944 – "Kesäsodan" taustaa, tapahtumia ja lähikuvia patterinpäällikön näkökulmasta, 3. painos, WSOY, 1956
• Robert Brantberg: Tank General Ruben Lagus