The southeastern portion of Estonia borders Lake Peipus and lies within a day’s march of Pskov, a major Soviet city in this region, and the provincial (oblast) capital. On 16 February, the Red Army started another offensive to recapture Estonia. The newly formed Estonian Red Army drove northwest from the outskirts of Pskov and initially captured the Setomaa, Vastseliina, and Räpina Parishes by 15 March. After recovering from the onslaught, the Estonian 2nd Division countered with their own thrusts to regain Petseri County (now part of Võru and Põlva Counties).

The Estonian 2nd Division counterattacked and regained Petseri County by 28 March. Both sides would thrust and counterthrust for the next two months, seeking an advantage on the front but failing to earn one. Meanwhile, the Estonians continued to funnel more reinforcements and equipment into this front, while the Soviets were strapped for men and supplies. Eventually logistics would turn the tide in favor of the Estonians and Pskov would be captured from the Soviets in the end of May. Unfortunately, due to poor relations with the White Russian army, the Estonians would later turn over the defense of Pskov over to them and depart for the north, whereupon the White Russians would be attacked by the Red Russians in August and retreat from the city.