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Maxwell Fyfe, along with Patrick Spens, Derrick Gunston and others, backed the National Government over the Hoare-Laval Pact, and he supported Neville Chamberlain over the Munich Agreement.
However, after the German occupation of Czechoslovakia in March 1939, Maxwell Fyfe joined the Territorial Army and, at the outbreak of World War II in September, he was deployed to the Judge Advocate-General's department.
He was badly injured in an air raid in September 1940.
In May 1941 Maxwell Fyfe became deputy to R. A. Butler's chairmanship of a Conservative Party committee to analyse forthcoming post-war problems, taking over from Butler in July 1943.

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