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The unit was created at the end of the summer of 1937. It was made up of the 25th, 86th, and 114th brigades, with their command post in Villanueva de Córdoba. Command of the division fell to Aldo Morandi, with Fritz Schiller as Chief of Staff. At the end of the year it was incorporated into the VIII Army Corps.
In February 1938, Morandi took command of the Extremadura Division, being replaced by José Frías González-Mouvelles. Except for a few sporadic actions, for most of the war the 63rd Division did not take part in significant military operations. In March 1939, after the Casado coup, Ildefonso Castro Ruiz assumed command of the unit. The unit was still on the Córdoba front when it found out about the end of the war.