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Yes, the AF-S DX NIKKOR 18-55mm f/3.5-5.6G VR II Zoom Lens is compatible with the D40. This lens features a retractable barrel that locks into place when not in use. When used on the D40 the lens will display "Lens not Attached" if the camera is turned on when the lens is in the retracted position. Extending the lens from the locked/retracted position will clear this message and allow the lens to be used normally.
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