Abstract: This article explores ways to improve the institute of rehabilitation of individuals and legal entities illegally brought to administrative responsibility in Russian administrative law. The substantiation is given that the institute of administrative and legal rehabilitation consists of a set of actions aimed at making a decision on the termination of administrative prosecution on rehabilitating grounds, restoring an innocent person in violated rights and compensation for the harm caused. Based on the analysis of practical proposals put forward by scientists, the necessity is substantiated and ways of implementing legal regulation of administrative and legal rehabilitation using public and civil law mechanisms are proposed. The main conclusions of the study are that the right guaranteed by Article 53 of the Constitution of the Russian Federation to everyone to compensation by the state for damage caused by illegal actions (or inaction) of public authorities or their officials should be reflected in the sectoral (administrative) legislation. For the development of the institute of rehabilitation, it is important to use the experience of countries that recognize in national administrative legislation the right to rehabilitation and compensation for damage caused to an individual or legal entity by illegal actions of the authorities of jurisdiction. Such experience is important for the development of the institute of rehabilitation in the Russian administrative legislation. The introduction of the institute of rehabilitation into the Russian administrative legislation will not only ensure the rights guaranteed by the Constitution of the Russian Federation, but also improve the quality of the administrative process (in terms of proceedings on administrative offenses).