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This paper explores how the link between psychiatric health and the judiciary system has changed over time, providing a critical analysis of the laws and procedures that have influenced this relationship. People with mental illnesses were kept in cruel conditions in prisons and almshouses with little consideration for their unique needs. Deinstitutionalization, a major policy change that attempted to move people from mental institutions to community-based care, occurred in the middle of the 20th century. However, many were frequently left untreated due to a lack of resources and assistance, which resulted in their involvement with the criminal justice system. To deal with this dilemma, contemporary methods place a strong emphasis on diversionary tactics. These include crisis intervention teams (CIT), which give law enforcement officers the means to defuse situations involving psychological crises, mental health courts, that provide treatment-focused solutions to incarceration, and community partnerships, which offer continuous support. By recognizing the need to address mental health issues to lower recidivism and encourage society reintegration, these initiatives mark a change from punitive to therapeutic justice. To promote fair and compassionate treatment for people with mental illnesses, this analysis emphasizes how crucial it is to match criminal justice procedures with mental health services.