The 5th Panzer Division was established on November 24, 1938, in Oppeln, then a part of Germany (currently Opole, Poland). The division took part in the 1939 invasion of Poland, though it did not play a significant role. It was involved in the southern advance toward Lwów and participated in the Battle of Lwów.
Due to a shortage of Pz-III and Pz-IV tanks, the 5th Panzer Division was below its full authorized strength in May 1940.