The Division was organized and equipped into a tank-light, infantry-heavy unit. The 6th and 7th Kavallerie Schiitzen Regiments each consisted of two battalions of motorized infantry. Other divisional units included a reconnaissance regiment, an artillery regiment, an antitank battalion, a pioneer or combat engineer battalion, a signals battalion and other service and support units.
Divisional armoured strength was provided by a single Panzer unit, the 33rd Panzer Battalion. This included one motorized signals platoon, one staff platoon, three light panzer companies, one motorized reserve platoon, one motorized maintenance platoon, and one light supply column. At the outbreak of war, the Panzer Abteilung had 62 tanks available, mostly Pz.Kpfw Is and IIs, with a few Pz.Kpfw IIIs and IVs becoming operational.
The support units included more supply, maintenance and fuel columns, a divisional administration unit, a field bakery, a butcher detachment, various medical and veterinary units, a military police troop and a field post office.
After the successful completion of the invasion of Poland, Hitler allowed Erwin Rommel to choose whatever unit he would like to command. Although Rommel had no practical experience in tank warfare, he asked for a Panzer division and on 15 February 1940 he received command of the 7th Panzer Division. In preparation for the invasion of the low countries, the 7th Panzer Division became part of the 15th Panzer Corps under the command of General Hoth.