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This paper explores how architectural design can contribute to safer, more effective, and more humane correctional environments by supporting both staff well-being and resident rehabilitation. Drawing on two recent Danish projects — Maribo Halfway House and Engelsborg Family House — the paper examines how spatial design, both retrofitted and new build, can bridge institutional structures and everyday domestic life, promoting dignity, trust, and constructive social interaction. The discussion reflects on design strategies that prioritize normalization, material warmth, spatial transparency and less institutional environments as means to strengthen human relations and resocialization. Ultimately, the paper argues that correctional architecture plays a critical role in shaping ethical, relational, and rehabilitative frameworks that extend beyond security measures, aiming instead to foster sustainable transitions back into society. Furthermore, this paper shows how transitional facilities can co-exist with the communities around them as residential settings.