The rehabilitation of prisoners is a fundamental component of Indonesia’s correctional system, designed to restore behavior, enhance self-reliance, and prepare inmates to reintegrate as productive members of society. This study is grounded in various challenges that hinder the effectiveness of rehabilitation efforts, including overcrowded correctional facilities, limited infrastructure, low inmate motivation, insufficient program diversity, and the lack of competent correctional officers. The research aims to evaluate the extent to which rehabilitation practices align with modern criminal law principles that emphasize rehabilitation, human rights protection, and social reintegration. This study employs a literature-based method by examining key regulations such as Law No. 22 of 2022 and Law No. 1 of 2023 alongside empirical findings from multiple correctional institutions in Indonesia. The results indicate that rehabilitation programs, both personality development and vocational training, have produced positive impacts, including behavioral change, improved social readiness, and reductions in recidivism rates in several facilities. Nevertheless, the implementation has not reached optimal effectiveness due to structural, psychological, and social constraints, particularly the persistent stigma faced by former inmates upon release. In conclusion, effective prisoner rehabilitation can only be achieved through comprehensive reforms, which include enhancing infrastructure quality, improving staff competence, implementing individualized rehabilitation approaches, utilizing digital technology, and strengthening societal support for reintegration. A humanistic, adaptive, and collaborative approach is essential to realizing a modern correctional system capable of fostering sustainable behavioral transformation.