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Various quasi-experimental studies and systematic reviews have shown that imprisonment does not have the deterrent effect that is often assumed by policymakers. In contrast, there seems to be a slight criminogenic effect of incarceration that may be explained by contamination, stigmatization, resettlement problems, and other negative influences. However, most of the relevant research addressed relatively short prison sentences and ‘pure’ custody without taking the research on offender treatment into account. Therefore, this paper compares meta-analytic findings on ‘what works’ in correctional treatment in the community and in custody. We review meta-analyses on the treatment of general, violent, sexual, drug-addicted, and other offender groups. The overall results are not fully consistent; however, there is a tendency of smaller treatment effects in custodial programs. Explanations and practical suggestions for reducing negative custodial framing conditions are described.