Community policing is one of the Republic of Indonesia's police programs aimed at tackling crime and kamtibmas conditions faced by society today. The Community Policing Program has an advantage in solving security and order issues that are carried out jointly with the community through partnership forums (deliberation), and does not make the community merely an informant, but with the police being the main actors, making every decision regarding issues arising in relation to order and security Public. This study aims to describe and analyze the implementation of penal mediation which is carried out based on discretion by community policing at the Kulonprogo Sector Galur Sector Police; Describe and analyze the supporting and inhibiting factors of the implementation of penal mediation by community policing in the Kulonprogo Sector Galur Sector Police; and Formulating an ideal pattern of penal mediation that is carried out based on discretion by future community police. This research method is included in the type of juridical-empirical legal research (socio-legal research) which is descriptive-analytical. Data collection techniques used were literature study, interviews (interview), and a list of questions. This research uses descriptive qualitative analysis, the data obtained are analyzed qualitatively and presented descriptively. The qualitative method is a method of research that produces descriptive-analysis data. The results of the study are that the implementation of penal mediation carried out based on discretion by the Kulonprogo District Police, Galur Sector through community policing institutions is by involving many parties other than the perpetrators and victims, also involving stakeholders such as community leaders and religious leaders who are members of FKPM. Factors supporting the implementation of criminal mediation by the Galur Sector Police are: First, the substance of Law Number 2 of 2002 concerning the Indonesian National Police which gives freedom to the police at the time of carrying out all duties, obligations and authorities in law enforcement; Second, investigating officers. The inhibiting factors for the implementation of mediation are: facilities and infrastructure; Second, community support; Third, cultural factors that grow in the community; Fourth, the structure factor of the police institution.