By the late 1940s, the quality of her film roles had improved, and she achieved recognition for her dramatic abilities with the first of five Academy Award for Best Actress nominations for her performance as an alcoholic in Smash-Up, the Story of a Woman (1947). Success continued through the 1950s as she received subsequent nominations for My Foolish Heart (1949), With a Song in My Heart (1952), and I'll Cry Tomorrow (1955). She finally won for her portrayal of death row inmate Barbara Graham in I Want to Live! (1958).
After Hayward's second marriage and subsequent move to Georgia, her film appearances became infrequent, although she continued acting in film and television until 1972. She died in 1975 of brain cancer.