Plans to introduce a presumption against short-term jail sentences of up to one year have been signed off by MSPs.
Judges in Scottish courts have been instructed since 2011 not to impose a prison sentence of three months or less, unless no other punishment is deemed "appropriate".
However, Holyrood has now approved of an order to extend this presumption to sentences of 12 months or less by 83 votes to 26.
Justice Secretary Humza Yousaf said: "This Government is committed to delivering the best outcomes for individuals both in and out of custody, but what we'd like to see is less people entering custody in the first place, unless absolutely necessary.
"The Order that Parliament is asked to approve today will not solve the issue of reducing reoffending, but as part of a broader, wide-ranging approach, has the chance of delivering better outcomes for all of Scotland's people."
READ MORE: MSPs reject plan for 'life means life' prison sentences in Scotland
Scotland has one of the highest prison population rates in Europe - with 140 people per 100,000 behind bars compared to 65 in Norway.
The Scottish Tories were the only party at Holyrood not to support the move.
Scottish Tory MSP Liam Kerr said: "This SNP soft-touch justice tactic could increase the risk to public safety, fail to punish criminals and deny victims justice.
"This SNP policy could let attempted murderers, sexual and violent offenders and those who've attacked emergency workers back out onto the street.
READ MORE: Expansion of electronic tagging branded 'ruse to empty prisons'
"Victims groups have already warned that this policy could increase risk to victims of domestic abuse.
"The community system is already over-stretched - increasing offender numbers so dramatically could stretch it to breaking point.
"The Scottish Conservatives are the only party completely opposed to this presumption and will continue to stand up for victims and the safety of the public."
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