Indigenous customary law should not be viewed simply in terms of traditional tribal punishments but should be seen principally as the application of cultural values and principles to Indigenous community life. This article reviews the piecemeal progress in recognising customary law, arguing that Australia continues to ignore or misunderstand developments that see increasing recognition for customary law in international instruments such as the United Nations Draft Declaration on the Rights of Indigenous Peoples. There is a large amount of violence, particularly family violence, in Indigenous communities, and this could best be addressed by a wide range of diversionary initiatives under an Indigenous community justice system.