Iraq has endured decades of authoritarian rule and conflict, resulting in widespread property violations and displacement. In response, several property restitution and compensation initiatives have been implemented to pursue justice for the victims. However, questions remain about their ability to provide adequate and effective redress. This paper critically examines the flaws and challenges of these mechanisms through the lens of transitional justice. It investigates the extent to which property reparations in Iraq have been structured and implemented within the framework of a transitional justice policy, while analysing the underlying principles of the concept. The findings indicate that property reparations have fallen short due to the lack of a well‐designed programmatic framework supported by viable institutional models and procedures. Additionally, weaknesses lie in the lack of coherence between these initiatives and other institutions and policies, necessitating a holistic framework that guides institutional arrangements, financing, and prioritization strategies. Consequently, this paper argues that a more effective, holistic, and contextually grounded approach informed by transitional justice has the potential to address these issues and strengthen the reparations efforts.