On 30 November 1921 the division was renamed the 25th Poltava Rifle Division before becoming the 25th Kremenchug Rifle Division on 4 January 1922. In 1922 the division became part of the Ukrainian Military District, which became the Kiev Military District in 1935. Its former designation, the 25th Chapayev Red Banner Rifle Division, was restored on 11 July 1925. The division was awarded the Honorary Revolutionary Red Banner in 1928 and the Order of Lenin in 1933. The division transferred to the Odessa Military District in May 1940 in preparation for the Soviet occupation of Bessarabia in June and July of that year. After participating in the occupation, the 25th became part of the 9th Army.