Diversion policies and programs are community‐based services or sanctions offered to, or imposed on, prison‐ or jail‐bound offenders at any stage of the adjudication process. Avoidance of incarceration and treatment of the dysfunctions underlying specific criminal behaviors are their defining features. They are proposed as solutions to the problems of prison overcrowding, spiraling prison costs, and high recidivism among incarcerated offenders. First instituted as the most rational response to juvenile delinquency, diversion has become a versatile model and is used to address a variety of crime problems. Racial disparities in enrollment, disposition without full adjudication, and net‐widening of social control are the major pitfalls of poorly implemented diversion initiatives. Current efforts at reforming mandatory minimum prison sentences and expanding problem‐solving justice initiatives are the most recent achievements of the diversion movement.