After its return from the Korean War, the 40th Infantry Division was reorganised on 1 July 1954 as the 40th Armored Division. On 1 December 1967, a major reorganization of the National Guard reduced the Guard to eight combat divisions, with the 40th Armored Division as one of the units designated for inactivation. On 29 January 1968, the Division was eliminated and the 40th Infantry Brigade and 40th Armored Brigade were organized.