When Japan invaded, President Manuel L. Quezon first fled to Bataan and then to the United States to establish a government-in-exile.
 Quezon ordered Laurel, Vargas and other cabinet members to stay.
Laurel's prewar, close relationship with Japanese officials (a son had been sent to study at the Imperial Japanese Army Academy in Tokyo, and Laurel had received an honorary doctorate from Tokyo University), placed him in a good position to interact with the Japanese occupation forces.

Laurel was among the Commonwealth officials instructed by the Japanese Imperial Army to form a provisional government when they invaded and occupied the country.
He cooperated with the Japanese, in contrast to Chief Justice Abad Santos, who was shot for refusing to cooperate.
Because he was well known to the Japanese as a critic of US rule, as well as having demonstrated a willingness to serve under the Japanese Military Administration, he held a series of high posts in 1942–1943.
Under vigorous Japanese influence, the National Assembly selected Laurel to serve as President in 1943.
When Japan invaded, President Manuel L. Quezon first fled to Bataan and then to the United States to establish a government-in-exile.  Quezon ordered Laurel, Vargas and other cabinet members to stay. Laurel's prewar, close relationship with Japanese officials (a son had been sent to study at the Imperial Japanese Army Academy in Tokyo, and Laurel had received an honorary doctorate from Tokyo University), placed him in a good position to interact with the Japanese occupation forces.
Laurel was among the Commonwealth officials instructed by the Japanese Imperial Army to form a provisional government when they invaded and occupied the country. He cooperated with the Japanese, in contrast to Chief Justice Abad Santos, who was shot for refusing to cooperate. Because he was well known to the Japanese as a critic of US rule, as well as having demonstrated a willingness to serve under the Japanese Military Administration, he held a series of high posts in 1942–1943. Under vigorous Japanese influence, the National Assembly selected Laurel to serve as President in 1943.
Jose P. Laurel