This literature review examines the prevalence of mental health issues among incarcerated Aboriginal and Torres Strait Islander people in Australia, focusing on psychological distress, suicide attempts, and the impact of parental incarceration. The review analyzes quantitative and qualitative data from various studies, highlighting the disproportionately high rates of psychological distress among incarcerated Indigenous individuals, with 73% of men and 86% of women experiencing mental disorders. It also addresses conflicting findings regarding suicide attempt rates, noting that one study found a significantly higher prevalence among Indigenous inmates (31.6%) compared to non-Indigenous inmates (18.7%) and the general Australian population (3.2%). The review further explores how parental incarceration, particularly for mothers, exacerbates mental health challenges due to cultural roles and the risk of children being placed in out-of-home care. Ultimately, the review underscores the need for improved mental health support for Indigenous Australians within the criminal justice system and a national approach to reduce their overrepresentation in prisons.