In 1862, Hatton and his men were ordered to the Richmond area to oppose the Federal drive on the Confederate capital. During the resulting Peninsula Campaign, Hatton served with distinction, and on May 23, 1862, he was promoted to brigadier general of the 4th Brigade, 1st Division, Army of Northern Virginia; this appointment was not confirmed by the Confederate Congress. Just eight days later, he was shot in the head and killed while leading his Tennessee Brigade at the Battle of Fair Oaks.