Rommel asked Hitler for command of a panzer division. On 6 February 1940, three months before the invasion of France, Rommel was given command of the 7th Panzer Division, for Fall Gelb ("Case Yellow"), the invasion of France and the Low Countries. This promotion provoked resentment among some of his fellow officers. Rommel's initial request for command had been rejected by the Chief of Army Personnel, who cited his lack of previous experience with armoured units and his extensive prior experience in an Alpine unit made him a more suitable candidate to assume command of a mountain division that had recent need to fill its commanding officer post. Rommel had, however, emphasized the use of mobile infantry and recognized the great usefulness of armoured forces in the Poland campaign. He set about learning and developing the techniques of armoured warfare with great enthusiasm. The decision to place him in command of an armoured division was borne out to be an excellent one. In May, 1940 his 7th Panzer Division became known as the "Ghost Division" because its rapid advances and fast paced attacks often placed them so far forward that they were frequently out of communication with the rest of the German army.

  Invasion of France and Belgium

On 10 May 1940 a part of XV Corps under General Hoth, advanced into Belgium to proceed to the Meuse river near the Walloon municipality of Dinant. At the Meuse, 7th Panzer was held up owing to the bridges having been destroyed and to determined sniper and artillery fire from the Belgian defenders. The Germans lacked smoke grenades, so Rommel, having assumed personal command of the crossing, ordered a few nearby houses to be set on fire to conceal the attack. The German Panzergrenadiers crossed the river in rubber boats, with Rommel leading the second wave. The Division dashed further inland, always spurred on by Rommel and far in front of any friendly forces.

Rommel's technique of pushing forward boldly, ignoring risks to his flanks and rear and relying on the shock to enemy morale to hinder attacks on his vulnerable flanks, paid large dividends during his rapid march across France. When encountering resistance, Rommel would simply order his tanks forward, all guns blazing, relying on the shock of the sudden assault to force the enemy to surrender. This method offset the disadvantage the German tanks had in terms of armour and low-calibre guns, often causing large formations of enemy heavy tanks to simply give up a fight they would otherwise have had a good chance of winning. This approach, although it saved lives on both sides by avoiding prolonged engagements, did cause mishaps. On one occasion his tanks, following this tactic, closed with a convoy of French trucks and fired into them only to realise that the trucks were acting as ambulances ferrying wounded from the front. [29]

  Battle of Arras

By 18 May the Division had captured Cambrai, but here Rommel's advance was checked briefly. His chief of staff, still with the unmotorized part of the Division in Belgium and not having received radio reports from Rommel, had written off Rommel and his combat group as lost and so had not arranged for fuel to be sent up.There was a degree of controversy over this issue, with Rommel furious at what he perceived as a negligent attitude on the part of his supply officers, whereas his chief of staff was critical of Rommel's failure to keep his staff officers up to speed on his actions.

On 20 May Rommel's tanks reached Arras. Here he wanted to cut off the British Expeditionary Force from the coast and Hans von Luck, commanding the reconnaissance battalion of the Division, was tasked with forcing a crossing over the La Bassée canals near the city. Supported by Stuka dive bombers, the unit managed to cross after which the British launched a counterattack (the Battle of Arras) on 21 May. Facing the British Matilda tanks, the Germans found their 3.7-cm guns useless against the heavy armour and a battery of 88 mm guns had to be brought up to deal with the threat, with Rommel personally directing the fire.

After Arras, Hitler ordered his tanks to hold their positions, while the British, in Operation Dynamo, evacuated their troops at Dunkirk, and the 7th Panzer Division was given a few days of much-needed rest. On 26 May, 7th Panzer continued its advance, reaching Lille on 27 May. For the assault on the town, General Hoth placed his other tank division, 5th Panzer Division, under Rommel's command, to the chagrin of its commander, General Max von Hartlieb. The same day, Rommel received news that he had been awarded the Knight's Cross of the Iron Cross; the first divisional commander to be so honoured during the campaign. This award, which had been secured for Rommel at Hitler's behest, caused more animosity among fellow officers, who were critical of Rommel's close relationship with Hitler. They believed that this was further evidence that Hitler seemed to give Rommel preferential treatment.

On 28 May, while making the final push into Lille and far in front of friendly forces, 7th Panzer came under heavy fire from French artillery. Rommel drove his forces on, capturing Lille, trapping half of the French First Army, and preventing their retreat to Dunkirk. After this coup, Rommel's forces were again given time to rest.

  Drive for English Channel

Rommel, resuming his advance on 5 June, drove for the River Seine to secure the bridges near Rouen. Advancing 100 kilometres (62 mi) in two days, the division reached Rouen only to find the bridges destroyed. On 10 June, Rommel reached the coast near Dieppe, sending his "Am at coast" signal to the German HQ.

On 15 June, 7th Panzer started advancing on Cherbourg. On 17 June, the Division advanced 35 kilometres (22 mi), capturing the town on the following day. The Division then proceeded towards Bordeaux but stopped when the armistice was signed on 21 June. In July, the Division was sent to the Paris area to start preparations for Operation Seelöwe, Sea Lion the planned invasion of Britain. The preparations were half-hearted, however, as it soon became clear that the Luftwaffe would not be able to secure air superiority over the Royal Air Force.

Ghost Division

7. Panzer-Division was later nicknamed Gespenster-Division (the "Ghost Division"), because of the speed and surprise it was consistently able to achieve, to the point that even the German High Command at times lost track of its whereabouts. It also set the record for the longest thrust in one day by tanks up to that point, covering nearly 200 miles (320 km).

Rommel received both praise and criticism for his tactics during the French campaign. Many, such as General Georg Stumme, who had previously commanded 7th Panzer Division, were impressed with the speed and success of Rommel's drive; however, others were more reserved, some out of envy, others because they felt Rommel took unnecessary risks. Hermann Hoth publicly expressed praise for Rommel's achievements but had private reservations, saying in a confidential report that Rommel should not be given command over a corps unless he gained "greater experience and a better sense of judgment.»Hoth also accused Rommel of an unwillingness to acknowledge the contributions of others to his victories.

The Fourth Army commander, General Günther von Kluge, also criticised Rommel for falsely claiming all the glory for his achievements. Rommel did not, Kluge felt, acknowledge the contribution of the Luftwaffe, and Rommel's manuscript describing his campaign in France misrepresented the advances of neighbouring units to elevate the achievements of his own dazzling advances. Kluge also cited the complaint by General Hartlieb that Rommel had misappropriated 5th Panzer's bridging tackle on 14 May after his own supplies had run out in order to cross the Meuse, delaying 5th Panzer for several hours. Rommel had repeated this procedure on 27 May at the River Scarpe crossing.