Restorative justice is a victim-centred approach to crime resolution that emphasizes empowerment and healing by engaging the community, offenders, and victims in the process of addressing the damage caused by criminal behaviour. The following are essential principles: the restoration of both emotional and material losses, the accountability of offenders, and the elevation of the role of victims and community members. This method prioritizes emotional recovery and victim participation, which sets it apart from conventional punitive justice systems. Victims who participate in restorative practices frequently experience psychological advantages, including enhanced closure, diminished trauma symptoms, and a sense of empowerment. Nevertheless, restorative justice is not without its obstacles. Further research and refinement are required due to the risk of secondary victimization, which may result in additional injury to victims, and the limited research on its long-term effectiveness in victim recovery. Restorative justice's humanistic, dialogue-driven methods, which promote healing, accountability, and reintegration, offer a promising alternative to conventional justice, despite these challenges. This article delves into the principles, psychological effects, and constraints of restorative justice, emphasizing the necessity of ongoing evaluation to guarantee its efficacy and empower victims.