In 1965, Minoru Hayashi built his first racing car, a rebodied Honda S600 coupe. Belonging to Tojiro Ukiya, it was called the "Karasu" (crow in Japanese), due to its shape. Built on a small budget and in a short time, the Karasu emphasized weight reduction and aerodynamics using FRP materials. The car went on to win its debut race at the Suzuka Clubman Race, despite Hayashi having no experience in racecar construction. In 1966 he went on to build the "Macransa", a more extensively modified Honda S800, to compete at the Japanese Grand Prix. This was followed by the "Kusabi" three years later, which was a Formula Junior racing car, and the "Panic" in 1971.

In 1975 at Takaragaike, Kyoto, Hayashi formed Dome with the intention to manufacture cars with small production runs, using racing machines to develop the technology. Three years after the company's formation in 1978, the company produced its first concept car designed for road use, the Nissan L28-powered Dome Zero (童夢-零Dōmu Zero). It made its public debut at the Geneva Motor Show the same year. For the following year, Dome produced a production version of the Zero called the Zero P2, which was exhibited at the Chicago Auto Show and Los Angeles Auto Expo. The car was refused type approval by the Japanese government, however, and was unable to go into production.

Dome continued as a sportscar constructor building cars for Toyota's motorsport department TOM'S to compete in the All Japan Super Silhouette Championship, then later used Group C cars at the All Japan Sports Prototype Championship, which were also used to compete in the World Sportscar Championship until the end of the decade when Dome switched to building cars for Honda.