Darren Clark, 26, escaped from HMP Castle Huntly, near Dundee, this morning.
Police had said he is dangerous and urged the public not to approach him directly, but report any sightings.
Tonight, the force said he had been found and returned to prison. They also thanked the public for their assistance.
He is serving 10 years for the attempted murder after he poured petrol through the door and set it alight of the flat where his former partner Evelyn Ross, her mother Janis, 41, and her sister Lisa Triplett, 17, lived.
The trio were inside Fort House, one of Edinburgh's tallest tower blocks, at the time of the incident and the fire took hold in the entrance. He was jailed February 2010 by judge, Lord Emslie, who told him: "No one was physically hurt and, equally luckily for you, people were not asleep and were able to put out the fire.
"It was clearly premeditated and you were drunk that night."