Ashley Podsiad-Sharp, from Barnsley, kept the handbook - containing detailed advice on how to kill people in a race war - in an encrypted hard drive.
He was convicted at trial of possessing a document likely to be useful in preparing an act of terrorism.
The 42-year-old worked at HMP Armley in Leeds until his arrest in May 2022.
Sentencing him to eight years in jail Judge Jeremy Richardson KC said Podsiad-Sharp "idolizes Hitler," denies the Holocaust and hates Jewish and gay people.
He described Podsiad-Sharp's White Stag Athletic Club (WSAC) as "a cauldron of self-absorbed neo-Nazism masquerading as a low grade all-male sports club" which he used to "camouflage your real purpose, to incite violence against those you hated".
Members of the group, in which Podsiad-Sharp called himself "Sarge", were required to prove they were racist to gain access and were questioned about their racial heritage and sexuality during a vetting process, Sheffield Crown Court heard.
Judge Richardson said he was confident members of the group would eventually have committed acts of terrorist violence.
A far-right handbook called the White Resistance Manual was found on Podsiad-Sharp's computer and hard drive by counter-terrorism police.
The 200-page document called for armed resistance against the "threat to the white race" from Jews and non-white people and gave detailed information on how to build weapons and carry out terror attacks, the court heard.
Weapons including a bow and arrows, an eight-inch knife and an axe were found in Podsiad-Sharp's house.
Prosecutor Denise Bree-Lawton told Thursday's sentencing hearing that Podsiad-Sharp had "trained like a soldier" preparing for "armed struggle" as well as waging a "war of words" online to advance the message of white supremacy.
Peter Eguae, in mitigation, said there was no evidence Podsiad-Sharp "used or endorsed" the manual. He said his client "abhors violence" and used his weapons for archery and camping.
He argued Podsiad-Sharp's admiration for Hitler "doesn't make him a terrorist".
But Judge Richardson said he believed the manual was an "integral part" of Podsiad-Sharp's "malign purpose" of "encouraging acute violence towards those you hate".
He told the defendant: "You were recruiting men with equally malevolent views.
"I have no doubt whatsoever you harboured terrorist intentions and your motivation was terrorism.
"I have little to no doubt one or more of those individuals would have indulged in violence towards a minority group that you, and they, hated."
He said the "extremely dangerous" defendant must serve an additional five years on licence following his release from prison and would be subject to a serious crime prevention order which restricts his use of the internet.
Dressed in a T-shirt bearing the motto of Benito Mussolini's fascist paramilitary Blackshirts, Podsiad-Sharp gestured to supporters as he was led away to prison, saying "Jesus knows the truth".
Judge Richardson added he would write to justice secretary Alex Chalk MP to express concerns about Podsiad-Sharp's role at HMP Armley, where he said the defendant would have had access to vulnerable and disaffected white men.
"I have no idea what, if any, vetting was undertaken by the prison service when you obtained your job as a prison officer or what monitoring there was of you once in post," he said.
"A man with the perverted and extremely dangerous views you hold should never be employed in the responsible position of a prison officer."
A Prison Service spokesperson said: "While this appalling behaviour did not take place on our estate, we are absolutely clear there is no place in the Prison Service for anyone with such hateful and insidious views.
"Everyone applying to be a prison officer faces rigorous vetting processes to identify beliefs which would make them unsuitable for their position - which can result in employment being refused - and will always take immediate disciplinary action where staff are found to hold or disseminate extremist views."
