In view of the rapid development of the society, the Macao Government drew up a plan for a new prison at the beginning of the 20th century. Construction of the prison began in 1904 and was completed mid-1909. The prison went into official operation on 5 September of the same year.

This prison, built a century ago, was originally named "Central Prison" and commonly known as "Central Prison". The past “Central Prison” is located in the urban area of today's Macao peninsula, which used to be a desolate hillside.

On account of the overcrowding problem and inadequate facilities of "Central Prison" due to Macao’s rapid social development, in 1988, the Macao Government came to a decision to build a new prison, named "Coloane Prison", at the site of the former "Kuong Heng Tai" Firecracker Factory near the original "Coloane Juvenile Prison". In 1990, construction of the “Coloane Prison” was completed and put into service.

On 20 December 1999, the day of the Macao Handover, "Coloane Prison", originally under the former Justice Services Bureau (DSJ), became subordinate to the Secretariat for Security and was officially renamed "Macao Prison".

On 1 January 2016, Macao Prison and Youth Correctional Institution (formarly under the Legal Affairs Bureau) were restructured as the Correctional Services Bureau.