This study aims to analyze the application of diversion for children in conflict with the law during the investigation stage, examine police discretion in cases involving offenses punishable by more than seven years of imprisonment, and formulate a diversion model oriented toward restorative justice. This study employs a normative-juridical method with a descriptive-analytical approach, using statutory, conceptual, case, and comparative approaches. The primary legal sources are Law Number 11 of 2012 concerning the Juvenile Criminal Justice System and Law Number 16 of 2011 concerning Legal Aid. Data were collected through literature review and interviews with police officers and analyzed qualitatively through legal interpretation and normative analysis. The results show that the implementation of diversion at the investigation stage generally complies with applicable regulations but remains suboptimal due to institutional constraints, limited inter-agency coordination, inadequate supporting facilities, and inconsistencies in the application of restorative justice. The study finds that restricting diversion to offenses punishable by less than seven years of imprisonment may limit the implementation of the best interests of the child. Police discretion can facilitate diversion for more serious offenses, provided that strict criteria, accountability, transparency, and restorative justice principles are upheld.