The year 1943 saw a dramatic turn in fortune for German soldiers in the East; their enemy was becoming increasingly well equipped, gaining in battle experience and also in confidence as a result of the large scale defeat being inflicted on the Germans at Stalingrad.  Nonetheless, Germany would follow up the disastrous defeat at Stalingrad in January-February with a victory of its own at Kharkov, and finally launch its last large-scale offensive of the war in the East at Kursk in the late summer.  Both of these latter battles would involve the Grossdeutschland.

Finishing the Winter 1 January - 17 February 1943 The battles around Rzhev had bled the GD white; the division moved to Smolensk on 9 January, and on the 17th moved by rail the Volchansk area, between Byelgorod and Kharkov. Defensive Battles 8 February - 24 February 1943 It was shortly engaged in battles east of Byelgorod; on the 8th of February, Byelgorod was lost to the Russians.  GD saw much action between Byelgorod and Kharkov, and between the 16th and 23rd of February saw action along the Byelgorod-Kharkov railroad.  Between the 24th of February and 4 March, the Division was pulled out for a rest and send 30km south of Poltava. Reorganization 24 February - 5 March 1943 During the division's rest period, several new additions arrived under command, including the first Tiger tanks as well as a newly formed IV Artillery Battalion.  In January the Motorcycle Battalion had been redesignated Armoured Reconaissance and adopted the golden-yellow waffenfarbe and traditions of the cavalry.

Kharkov
5 March - 23 March 1943

On the 5th of March, GD concentrated again for a counterattack on Byelgorod, stepping off on the 7th.  They struggled through deep mud and captured Bogodukov on the 11th.  On that same day, the Fourth Panzer Army trapped several Russian divisions at Kharkov, and eventually regained Byelgorod (itself also a vital rail centre) to the north.   On the 19th, meanwhile, GD had taken Tomarovka, also north of Kharkov, and went back into reserve on the 23rd.

GD vehicles in Kharkov.

The victory at Kharkov, coming not long after a national period of mourning in Germany following the defeat at Stalingrad, was important for many reasons.  Kharkov was one of the largest cities in the Soviet Union, and was an important road and railway hub.  The Soviet armies, having fought a successful winter campaign, had felt that the Germans would be organizing a withdrawal and were eager to complete the destruction of German and allied forces in southern Russia that had begun with the annihilation of Sixth Army at Stalingrad..  The German counterattack was something of a surprise to them and the victory was given much publicity in an attempt to bolster morale at home and in the field.

Rest, Reorganization and Redesignation
23 March - 29 June 1943

The GD Division now entered a lengthy period of reorganization.  Additional SPW halftracks arrived - always in short supply in the Division - and GD was held in reserve.  In June, the Division was changed in status from Motorized Infantry to Panzergrenadier.

Citadel 30 June - 18 July 1943 Germany's last great offensive of the war in the east began on 4 July; GD was moving to positions north of Tomarovka in preparation for the assault on the last day of June.  GD was in action from the beginning of the offensive until the 16th of July, fighting heavily through well prepared enemy defences in depth, and from the 12th in defensive battles holding on to ground gained in the initial advances.  On the 18th, GD was relieved and moved back to the Tomarovka area.

Karachev
21 July - 3 August 1943

GD moved by truck and rail to familiar ground near Orel and Bryansk, the scene of the previous winter's fighting.  From 24 July to 3 August, enemy advances from Bolkhov were met by GD in the woods around Karachev.

Akthyrka
August 1943

GD was relieved on the 4th and refitted once more at Akhtyrka, becoming engaged in defensive battles in the region on the 8th, continuing through to the 23rd as Russian units advanced towards the Dniepr.  The Tiger battalion saw action here with the Division for the first time.

Retreat
September - October 1943

The first two weeks of September saw GD split up to reinforce weak areas of the German front line, earning for itself the nickname "die Feuerwehr" (The Fire Brigade).  By the end of the month, GD was required to retreat across the Dniepr, being one of the last German formations to do so. Several delaying battles and actions were fought, and heavy battles and attacks by both sides were launched in the Michurin-Rog area through to the middle of October.

Defensive Battles
October - December 1943

From 16 October to the end of the year, GD was involved in numerous withdrawals and defensive battles against strong enemy forces.