By the 1930s a systematic appropriation of martial arts by the state was underway, fueled in the successful wake of the Russo-Japanese War, sped up even more in 1942–1945 during the apex of Japan's "militarisation" (sengika).

The response was as follows: "We have reached a consensus to restructure the Dai-Nippon Butokukai, a registered society that has contributed to the advancement of budō for many years, and incorporate it into the organs of government.

After the end of World War II, the Supreme Commander of Allied Powers (General Douglas MacArthur) issued a directive to dissolve any and all military-related or nationalistic propaganda organizations.

In a memorandum proposed to the Chief of Staff, it also stated: "Dissolution of Dai Nippon Butokukai by order to the Imperial Japanese Government is recommended in accordance with the provisions of SCAPIN 548 Paragraph I-f on the grounds that this is an organization 'affording military or quasi-military training' and which provides for the 'perpetuation of militarism' or a martial spirit in Japan.

In 1953, the new Dai Nippon Butoku Kai was established to revive the pre-WWII DNBK with the philosophical vision of preserving the long-standing classical martial virtues and traditions.

The DNBK aims for the restoration of classical martial cultures, supporting allied research, instruction and service, promotion of international peace and harmony, and the advancement of greater humanity through Budo education.