Employing a descriptive-analytical method based on library research, this study examines the function of restorative justice in reducing recidivism within the Iranian criminal legal system. The central problem is that exclusive reliance on punishment and incarceration, particularly regarding reformable offenders, has not only failed to curb reoffending but has also strengthened the cycle of crime through judicial stigmatization, social exclusion, and the weakening of familial and communal bonds. The research findings indicate that restorative justice—by prioritizing victim reparation, offender accountability, criminal mediation, and community participation—can effectively facilitate social reintegration and decrease recidivism. An analysis of Iranian penal regulations reveals that while mechanisms such as alternative sanctions, deferred sentencing, and mediation provide a foundation for restorative approaches, the lack of a coherent criminal policy, executive obstacles, and the dominance of punitive attitudes hinder their full implementation. The innovation of this research lies in demonstrating that restorative justice in Iran should be viewed not as a total replacement for punishment, but as a differential and community-oriented complement for rehabilitation and the sustainable reduction of recidivism. Consequently, this study establishes that effective recidivism reduction in Iran requires a gradual transition from purely repressive penal policies toward a hybrid, restorative, and rehabilitative model.