Under increasing pressure, the Axis troops had withdrawn to the Margit Line, despite its name merely a series of a few scattered strongpoints in the villages between Siófok and Székesfehérvár and prone to infiltration by Soviet troops. The villagers found themselves not just exposed to war but also to harassment and stealing by German soldiers: fattened swine, ducks, geese, poultry and mainly wine. The Germans were not necessarily welcome and Soviets sometimes found unexpected help. Local guides helped them achieve several penetrations.

On 7 December, taking advantage of thick fog, Soviet troops infiltrated through the positions of the II Battalion of the Hungarian Infantry Central Small Arms School and captured the southern part of Polgárdi. During the same day, the Soviets surrounded various Axis units in the town. On 8 December, the 1st and 23rd Panzer Divisions attacked from the north and east to retake Polgárdi.

At 0630, 23rd Panzer Division’s battle group moved out from the east against Polgardi, while that of 1st Panzer Division entered Polgardi from the north and west. Just outside the town, Soviet tank hunter/killer teams moved against the German tanks. The Tigers started a frontal attack, dashing across a bridge across a creek at the western entry of the town. This feint assault drew the Soviets’ attention from the flanking movement, carried out from the east. The Royal Tigers, attacking in a wedge formation, quickly destroyed the Soviet anti-tank guns along the perimeter and took many prisoners.

The Soviets eventually offered stout resistance, especially along the main highway. Amid tough fighting for every building, but the Soviets gradually fell back and some of the defenders even fled in panic to the south. Large amounts of weapons and equipment remained behind in German hands. A strong Soviet infantry attack conducted in the afternoon across the railway line collapsed in the face of combined fires from the tanks, personnel carriers and infantry. One hundred dead Soviet soldiers had been left behind, the encircled German/Hungarian units relieved and the Margit Line restored.