Abstract: This article examines 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 to terminate administrative prosecution on rehabilitative grounds, restoring an innocent person to violated rights and compensation for harm caused. At the same time, there are no legal norms in the Administrative Code of the Russian Federation regulating the consequences taking place after a decision is made to terminate administrative and legal prosecution on rehabilitating grounds and to restore an innocent citizen's violated rights. According to the author, the currently available civil law mechanisms for compensation for harm are not able to fully ensure compliance with the legal consequences of rehabilitation in case of unlawful administrative prosecution. Based on the analysis of practical proposals put forward by scientists, the necessity is justified and ways of implementing legal regulation of administrative and legal rehabilitation using public legal 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 harm caused by illegal actions (or inaction) of public authorities or their officials should be reflected in sectoral (administrative) legislation. For the development of the rehabilitation, it is important to use the experience of countries that recognize in national administrative legislation the right to rehabilitation and compensation for harm 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 Russian administrative legislation. The introduction of the rehabilitation into 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).