Penal systems of Scandinavian countries, including Sweden, have developed a specific approach to punishment and punishing and a unique attitude of the society towards the perpetrators of criminal offences. As a rich welfare state with a high level of social cohesion, Sweden has a remarkably humane, but still exceptionally efficient prison system and a well organized network of aftercare treatments. Knowing that Sweden has a relatively low crime and recidivism rate, the authors of this paper analyze legislative framework for imposing and execution of imprisonment, organization and functioning of penitentiary institutions in that country, in-prison and aftercare treatments of adult and juvenile offenders and the impact of these factors on the decrease of crime rate and suppression of recidivism. Since the Republic of Serbia is about to establish new legislative and institutional framework for the application of probation, alternative sentences and post-penal treatments, Swedish solution is discussed in the paper as a potential role model, particularly when it comes to its contribution to successful re-socialization and reintegration of offenders within the community as a key factor to the prevention and suppression of recidivism.