Prostitution is considered a social stigma from ancient times. The legal institutions and frameworks of different nations are not aloof from its influence. This paper aims to study the different aspects associated with decriminalization of prostitution. The paper begins the arguments which contractarians in support of decriminalization and legalization of sex commerce give against the feminists’ theorists. The author analyzes the propositions laid down by Lars Ericsson. Then a comparative study is incorporated where different alternatives to its decriminalization is presented. It includes the European practice of licensing and its criticism, English and West Germany solution of regulating time, place, method and its limitations, and the concept of prevalence of laissez faire sex commerce and its harsh effects on the social balance. An analysis of decreasing rape rate based on the study of Cunningham and Shah is also presented. At the end, the possible consequences of legalizing prostitution have been described.