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Bayly returned to Peru in July 2013 for an interview hosted by Jaime de Althaus in his program of Channel N (8). In the interview, he made a statement that he will run for the Presidency under the banner of the party Popular Action. In 2011, he intended to run under various parties like the Christian People's Party.

In 2006, he supported right-wing Lourdes Flores for presidency. In 2010, Bayly announced he intended to run for president in the 2011 Peruvian general election to succeed Alan García. Later that year, he supported leftist candidate Susana Villaran in her successful campaign to become mayor of Lima. As a consequence, broadcasting company Frecuencia Latina cancelled his show.

After President of Peru Alberto Fujimori sought asylum in Japan in 2001 following a ten-year term in order to avoid prosecution on charges of corruption, independent news media found itself in a better position. Bayly was able to host political program El Francotirador ("The Sniper"), interviewing candidates to the 2001 presidential election. In that program, he apparently offended several personalities with his political opinions, and finally had to quit. Inspired by the experience, Bayly wrote a book, taking the title from the show. Later he resumed the program.

His novel No se lo Digas a Nadie (Don't Tell Anyone) inspired a screenplay for a film of the same title (1998), directed by Francisco Lombardi, and starring Santiago Magill and Christian Meier. He wrote other novels, all of them on politics, sexual freedom and friendship. Several of his books contain recurring semi-autobiographical elements (e.g. bisexual cocaine using Peruvian newscaster who moves to Miami). The character for "El Cojo" is supposedly based on his father who was also crippled. His characters are often heartless, and reflect moral ambivalence, which makes it difficult to identify with them.

Bayly's first late-night show, 1990 en America, got the attention of TV audiences and critics. The following year he hosted a copy of David Letterman's Late Show called ¿Qué hay de nuevo?.

During the 1990s Bayly hosted late-night shows in the United States at CBS Telenoticias Network Latin America and Telemundo for six years.

His first television appearance was in 1983 during Peru's municipal elections, interviewing candidates and politicians. Later on, he began a career as a late show host interviewing celebrities.

In 1982 he was accepted to the Pontificia Universidad Católica del Perú. After studying for four years, he had to leave the university as he could not pass a mandatory subject.

Jaime Bayly Letts [ˈxajme ˈβejli lets] (born February 19, 1965) is a Peruvian writer, journalist and television personality.