Severely discredited by the failure, Habicht went into seclusion in the Harz mountains before being allowed to take up the post of mayor of Wittenberg in 1937.[1] His reputation partially restored, Habicht returned to a more important role in November 1939 when he was appointed Undersecretary of State in the German Foreign Office.[1] As part of his duties, he was sent to Norway in 1940 to investigate the organization of government in the newly occupied territory, and he called for the removal of the Vidkun Quisling government and its replacement with an administrative council.[1] Initially, he had hoped to give any regime more legitimacy by placing the popular Paal Berg at its head rather than the minor figure of Quisling, although Berg rejected any such settlement.[4] However, when his plans were rejected by Johan Nygaardsvold and Haakon VII of Norway, Hitler once again lost faith in Habicht and ordered him into the Wehrmacht.[1] He spent the remainder of his life on the Eastern Front and died in action there at Nevel.[1]