The First Hungarian Infantry Division was formed from the First Infantry Brigade in 1938. It comprised the 1st Regiment of infantry and the 31st Regiment of reserve infantry and the 1st Regiment of artillery. It was mobilized during the Munich crisis although a shortage of rifles and a general lack of training hampered it. Hungary only partially demobilized after 1938 and the unit remained at its barracks in Budapest. As a part of I Corps, it was called up for the Balkan campaign of 1941, but was on LOC duties only.

Staring in late 1941, the Hungarians mobilized the so-called security divisions for anti-partisan duties in the Ukraine. These consisted of 2 reserve regiments and a small artillery battalion. The 1st Division was converted to this structure and sent east in December 1942 as part of what was known as the "Dead Army." It stayed on security duties until mid-1944, when it was assigned to the Hungarian First Army and placed in the front line because of the critical shortage of troops as a result of the Soviet annihilation of Army Group Center. It was thoroughly mauled and was withdrawn to Hungary at the end of July. As a part of the Szabolcsed plan for the modernization and reorganization of the army, all the old units were disbanded and reformed into triangular divisions with 3 regiments. Of the First Division's regiments, the 31st Reserve Regiment went to the 26th Reserve Division and the fate of the 1st Regiment is uncertain; it may have been used to reform the First Tank Division.