After the war, he pursued his military studies at the Higher War School (1919–1921). During that time (April 1920–February 1921), he also served (via a delegate) as prefect of Timiș-Torontal County. Dragalina was promoted to lieutenant colonel in 1920, colonel in 1928, and brigadier general in 1935. On 1 January 1940 he was named commander of the 6th Army Corps, stationed in Cluj, while on 6 June 1940 he was promoted to major general. In the aftermath of the Second Vienna Award (signed on 30 August 1940), Dragalina took a leading role in the evacuation of the Romanian troops from Northern Transylvania, and moved his headquarters to Brașov. During the Legionnaires' rebellion of January 1941, Dragalina with his troops restored order inside the city and secured the radio broadcast station at Bod. As a prelude to the invasion of Yugoslavia by the Axis powers in the spring of 1941, the 6th Army Corps was relocated to the Banat, but eventually the Serbian Banat was occupied by German troops.