The 2nd Division was then sent to rest areas in the Somme region for reorganisation and training. The 2nd Division's artillery was in action from the start of the Third Battle of Ypres on 22 July 1917, supporting the British 24th Division, but the infantry were not called upon until the second phase of the battle commenced on 20 September with the Battle of Menin Road. Attacking along an front with ten other divisions, including the Australian 1st Division on their right and the 9th (Scottish) Division on their left, the 2nd Division advanced an average of , with the 5th Brigade on the left, and the 7th on the right. The division sustained 2,259 casualties, and was relieved on 22 September by the Australian 4th Division, which then continued the offensive in the next the Battle of Polygon Wood.
