The author describes his personal experience as a psychiatrist and psychoanalyst working in prisons and how the despair of prisoners can blind one to the utility of such institutions to the individual and society. The historical relationship of psychoanalytic theory to societal institutions for modifying criminal behavior is discussed. The function of prisons in our society as institutions providing punishment, treatment, and deterrence facilities is carefully examined. Punishment is reviewed as to society's need for retribution and its function as a modifier of behavior. Several treatment methods and specific treatment programs designed to treat criminal behavior are described. The question of whether any treatment can be done in such settings is discussed as well as what techniques and conditions can lead to successful treatment with offenders. The many factors which minimize the deterrent functions of our criminal justice system are reviewed.