In April 1940 Schultz took part in Operation Weserubung and the invasion of Denmark at the head of the newly established 308 Infantry Regiment. Later that year, he took part in the invasion of France. On 1 September 1940 he was promoted colonel. Starting in June 1941 Paul Schultz led his regiment in the attack on southern Russia, where he was awarded on 18 October 1941 the German Cross in Gold.