In July 1905 he joined the Bolshevik faction of the Russian Social Democratic Labor Party (RSDLP(b)).

At the same time, he continued revolutionary work, was a member of the Voronezh Committee of the RSDLP, and headed its military organization.

According to the head of the Moscow Security Department, Colonel Zavarzin, Bogdanov "enjoys exceptional influence in the party environment as a serious and well-connected intelligent worker."

He briefly served as an interpreter in a Moscow military hospital for prisoners of war and was later sent to the front for a short period of time.

He was appointed to this post at the suggestion of his friend from technical school, engineer Lev Karpov, who headed the Department of Chemical Industry of the VSNKh.

He encouraged the creation of trusts as state associations of enterprises enjoying wide economic autonomy, operating freely on the market and making optimal use of all factors of production.

He opposed gross administrative interference in economic processes, while defending the trust form of organization of production from the supporters of Glavkism:[3] We can manage correctly and well only by taking the following principle as a basis: decentralization of industrial management itself, bringing the management body closer to the factory and plant, and at the same time centralization of the management of the entire industry as a whole.He was a member of the commission created by the Council of Labor and Defense to review decrees, systematize and develop legislation in accordance with the NEP in the field of industrial construction and trade turnover, supervising the process of partial transfer of medium and small enterprises to private capital.

Under his leadership, the Presidium of the VSNKh developed and issued a special instruction on the procedure for leasing state enterprises, usually inactive or unhealthy.

In one of his works, he wrote that it is necessary to give the opportunity to turn the machines of those thousands and tens of thousands of small and medium factories and factories that can provide for the peasantry, but which we cannot let go of, because we do not have enough strength and resources for all this trifle, because we need to think about something larger.He was also Chairman of the Main Concession Committee, which negotiated concession agreements with foreign firms.

He believed that attracting foreign capital was absolutely inevitable, since the equipment of entire sectors of our industry was completely dependent on foreign countries, since they had never been created or supported by Russia's own means.On February 16, 1925, he submitted an application to the Politburo to resign from his position as Chairman of the VSNKh.

At the end of 1925 he was sent on a three-month foreign assignment to study industrial affairs at enterprises in Germany, France, and England.

With his active participation, the Council of People's Commissars of the Russian Soviet Federative Socialist Republic approved a loan for the reconstruction of the water supply and sewerage systems of Rostov-on-Don, which had fallen into disrepair.

He established contacts with the US business community and as engaged in lecture activities and American economic management.

After returning from the USA, according to his sons, he lived "with a sense of the inexorable approach of the punishing club".

But now we are faced with the task of saturating the market with consumer goods, everyday items.In 1937, he was accused of keeping a store of arms removed from work and expelled from the party.

According to the recollections of his cellmate Boris Lesnyak, Bogdanov ("a thin, well-groomed, still quite cheerful man in a well-tailored suit made of expensive tights (there was still a crease in the trousers)") "was withdrawn, detached, and reserved" in the cell and broke down during interrogation.

A monument to Pyotr Bogdanov was erected at the Novodevichy cemetery on the grave of his wife Alexandra Klementyevna.