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The division was established on 11 July 1944 at the Thorn military training area in West Prussia under the designation 551st Sperr-Division. On 19 July 1944 the division was renamed the 551. Grenadier Division. In October, the division was involved in heavy fighting in Lithuania. On 9 October 1944 it was renamed 551. Volksgrenadier Division. Afterwards, the division fought in the Tilsit area of East Prussia and was taken prisoner by the Soviets.