The privatization of criminal justice, with a focus on prisons, has been proposed in many countries as a strategy to reduce costs and improve the efficiency of correctional systems. In Iran, this trend began in the 1990s and was implemented through two key experiences: the outsourcing of auxiliary services at Vakilabad Prison in Mashhad and the full management of Adelabad Prison in Shiraz by the private sector. The research method is descriptive-analytical and is based on the examination of official documents and practical experiences. Findings indicate that despite a relative improvement in resource management, prison privatization has become problematic and faces serious challenges. These include violations of prisoners’ rights, a decline in the quality of healthcare and welfare services, weak government oversight, and conflicts of interest between rehabilitative goals and the profit-driven motives of private entities. Moreover, this trend has led to inequality in access to rehabilitative services, placing low-income inmates in more unfavorable conditions. The lack of transparency in supervisory processes has also created opportunities for corruption and abuse. Consequently, privatizing criminal justice without effective oversight and adherence to human rights principles can exacerbate inequality and trigger social crises.