Social re-entry in the criminal justice system cannot be avoided since virtually all prisoners are released sooner or later. These initiatives are the outcome of a restorative justice approach which aims to reduce future offences by bringing back offenders to normal life by rehabilitation and restoration. Prisoners’ lives in prisons were very difficult in the Indian context till the last decade. Different rehabilitative approaches have been introduced inside prisons but, after release, the number of social re-entry initiatives is much less. The released face many psycho-social and economic issues which may destroy a person’s ability to adjust with the services provided. The national prison policy of India recommends aftercare services for the rehabilitation of released prisoners. The labelling and social stigma due to the crime hinders prisoners’ ability to re-enter society after release. In this context, the present paper explored the issues and challenges faced by the released prisoners during their social re-entry and came up with rehabilitative initiatives for a better restoration process in the Indian context.