The article reveals the theoretical and applied foundations, essence and content of stimulating law-abiding behaviour of convicts. In particular, it is noted that every convict is a human being, has inalienable natural rights and human dignity, and his/her personality is formed in the society where he/she received genetic information, where he/she has violated the law, and where the offender’s unlawful behaviour and crime in general are determined, therefore it is the duty of civil society and the State to help him/her to form law-abiding behaviour. The article argues that the development of the State policy in the field of execution of criminal sentences and probation by optimising the incentives for law-abiding behaviour of convicts is in line with the current progressive trends in legal understanding and legal culture, which are reflected in the documents of the United Nations, the Council of Europe, the case law of the European Court of Human Rights and the legislation of the most effective penitentiary policies in Europe, which emphasize the need to assist in developing the motives for law-abiding behaviour and to help in the development of the The article determines that negative trends in the current realities of crime and the execution of sentences, in particular, the absence of trends in reducing the number of prisoners and the number of prisoners per 100,000 population, as well as disappointing recidivism rates inherent in many European countries and the United States of America, determine the development of the state policy in the field of execution of criminal sentences and probation by optimising the incentives for law-abiding behaviour of convicts. As an example, the author analyses the dynamics of crime and the number of prisoners in the Kingdom of Sweden for 2000-2023. The article also highlights the financial and economic feasibility of the presented concept. Key words: stimulation of law-abiding behaviour of convicts, state policy in the field of execution of criminal sentences and probation, penitentiary system, rehabilitation, reintegration, correction, convicts, prisoners, crime, recidivism.