The 40th Rifle Division was formed on 16 April 1930 as a territorial division from the 7th Krasnoyarsk Territorial Rifle Regiment in Krasnoyarsk, Achinsk and Kansk. In January 1932, it was transferred to the active army and in October was moved to Razdolny, Nadezhdinsky District, Primorsky Krai. By February 1934, it was based in Posyet, Slavyanka, Novokievka and Barabash in the Khasan district of Primorsky Krai. The division became part of the 39th Rifle Corps in May 1936. It was given the honorific "named for Sergo Ordzhonikidze" on 14 April 1937. During the summer of 1938, the division fought in the Battle of Lake Khasan under the command of Colonel V.K. Bazarov. For its actions in the battle, it was awarded the Order of Lenin. During August 1945, it fought in the Soviet invasion of Manchuria as part of the 25th Rifle Corps. Its 3rd Rifle Regiment, commanded by Lieutenant Colonel Mikhail Abarmov, crossed the border in the Grodekovo region of Primorsky Krai and cut the railway line in the Japanese rear. It fought in the battle for Laoling pass. During the Harbin–Kirin Operation, the division had broken the Japanese defences by 10 August and advanced 20 km. On 11 August, the division helped capture Laoheyshan and Hunchun. In conjunction with a 12 August amphibious assault by forces of the Pacific Fleet, the division captured Unga and Najin on the eastern coast of Korea. On 15 August, they captured Wangqing, Chongjin on 16 August, Rana and Yanji on 17 August after the Japanese surrender. In October, the division was sent to Hoyren in North Korea, where it remained until February 1946. For its actions during the campaign, the division was awarded the Order of Suvorov 2nd class.