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The unit was created on April 28, 1937, as a reserve division of the Eastern Army. Subsequently, the 32nd Division was integrated into the XI Army Corps, being placed in the rear. Command of the unit fell to Alfonso Arana Vivanco, who was replaced in July 1937 by Manuel Gancedo Sáenz.
During the Aragon Offensive, the 32nd Division was forced to withdraw, establishing its new defensive positions on the Segre front . On September 8, 1938, the forces of the unit relieved the 55th Division in the Agramunt-Artesa de Segre-Tornabous sector. After the start of the Catalonia Offensive the 32nd Division, faced with strong enemy pressure, was forced to withdraw. In the course of the fighting, it suffered a severe loss. In January 1939 it was briefly added to the X Army Corps, although during the rest of the campaign it did not play a relevant role and ended up withdrawing to the French border.