This paper discusses the challenges and progress regarding the deinstitutionalization of persons with disabilities in Japan. Based on the United Nations Convention on the Rights of Persons with Disabilities, the right of persons with disabilities to independence and participation in the community has been emphasized. The paper describes the history and transition of Japan's institutionalization policy and provides an overview of the policy shift in 2002 and other changes. However, progress in deinstitutionalization has been slow, and the paper points to the lack of a transition framework, institutional staff awareness, and new residents as reasons for this. The paper recommends the importance of strengthening community support, promoting the decision-making power of persons with disabilities, and converting institutional resources to community support. It is hoped that these recommendations will be implemented to help people with disabilities live independently and participate in the community.