This chapter explores policies in which governments have taken illicit drugs and removed all prohibitions against them so that they can be legally produced, manufactured, sold, and purchased by adults. We begin by defining and conceptualizing legalization, and carefully distinguishing it from other alternatives to prohibition such as harm reduction, diversion, depenalization, and decriminalization. Second, we examine, in-depth, the cannabis policy of the Netherlands, a country which for decades has been spotlighted as an example of ‘legalization’. We chart the historical development of the policy in the Netherlands, and consider why it is more appropriate to understand their policy as a form of ‘de-facto legalization’ as opposed to full legalization. Thirdly, we survey cannabis policies in other countries, with the goal of understanding how and why they constitute legalization. We devote considerable attention to North America by comparing and contrasting the cannabis legalization of Canada to that of the United States. Finally, we conclude this chapter by exploring the legalization of other drugs including coca, ayahuasca, and psilocybin.