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In February 1943 the division was moved back to the Eastern Front as part of Erich von Manstein's Army Group South.

The division, as a part of SS-Obergruppenführer Paul Hausser's II SS Panzer Corps, took part in the Third Battle of Kharkov, blunting the Soviet offensive. During this campaign, Theodor Eicke was killed when his spotter aircraft was shot down. Hermann Priess succeeded Eicke as commander. The SS Panzer Corps, including the division, was then shifted north to take part in Operation Citadel, the offensive aimed at reducing the Kursk salient. It was during February 1943 that the 3rd SS Panzer Regiment received a company of Tiger I heavy tanks.