Returned to the Kiev Special Military District in April 1940, it participated in the Soviet occupation of Bessarabia and Northern Bukovina in June–July 1940. In August 1940 it was reformed as the 7th Motorized Division. During the Soviet-Finnish campaign the division consisted of the 27th, 257th, and 300th Rifle Regiments, the 23rd Reconnaissance Battalion, and the 405th Separate Tank Battalion. Fighting as part of the 8th Mechanized Corps, 26th Army, Southwestern Front, from June 1941, the division was decimated in attempting to halt the German advance. It was engaged in the Lutsk-Rovno area soon after the German invasion began.