From 1934-1935, he moved to Itō, Shizuoka, where he wrote Roman Shugisha no Techo ("Notes of a Romanticist") in 1935, declaring his estrangement from Marxism.

Hayashi returned to Kamakura, where he lived for the remainder of his life, and officially renounced all connections to the proletarian literature movement in 1936.

In 1943, Hayashi toured Korea, Manchukuo and Japanese-occupied north China as a member of the Literary Home-Front Campaign (Bungei Jugo Undo), a speech-making troupe organized to promote patriotism and support for the war.

After World War II, together with Ango Sakaguchi, Hayashi coined the term Buraiha in 1947 to describe the new trend in post-war Japanese literature.

The work astounded his former Marxist colleagues with an apologia for Japanese militarism and the Pan-Asianism in World War II, and a stinging criticism of leftist pacifism.

Hayashi wrote Dai Toa Senso Kotei Ron in commemoration of the hundredth anniversary of the Meiji Restoration.