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This study presents a comparative analysis of the World Health Organization's mental health legislative guidance spanning nearly two decades, documenting a fundamental paradigm shift that reflects broader transformations in psychiatric research and practice. By systematically examining the WHO's Resource Book on Mental Health, Human Rights and Legislation (2006) and the Mental health, human rights and legislation: guidance and practice: Guidance and Practice (2023), we illuminate how the UN CRPD has reconceptualized mental health law. Our analysis reveals a decisive transition from biomedical to human rights-based approaches. The 2006 guidelines, while progressive for their time, accepted involuntary hospitalization under procedural safeguards and endorsed substitute decision-making mechanisms. In contrast, the 2023 framework fundamentally rejects coercion, promotes deinstitutionalization, universal legal capacity, and supported decision-making. This transformation directly addresses multiple themes central to contemporary psychiatric research: promoting mental wellbeing through supportive rather than coercive interventions; reimagining crisis response through peer support rather than restraint; and ensuring participation of persons with lived experience in policy making. Despite its ambition, the implementation of the 2023 Guidance faces some challenges. First, its commitment to universal legal capacity and the abolition of coercive interventions risks outpacing existing social infrastructures and may even weaken substantive rights in high-risk situations. Second, cross-agency coordination confronts poorly coordinated departments and unclear accountability. Third, monitoring and data-driven oversight remains difficult to operationalize in many jurisdictions due to limited authority, resources, and data capacity. In response, this article advances three corresponding recommendations. WHO could strengthen the evidence base for rights-based mental health reforms by drawing more systematically on CRPD state reporting, committee reviews, while facilitating cross-national research to support the effective implementation of the Guidance. Regarding the whole-sectoral coordination, a phased and procedurally oriented approach may offer a more realistic starting point. International assessment mechanisms could supplement domestic monitoring by providing comparative legal assessments, supported by structured expert training and the inclusion of people with lived experience. While these challenges temper expectations of immediate transformation, the 2023 Guidance nonetheless makes a significant contribution by reorienting mental health law toward rights-based approaches and providing a durable normative foundation for future reform.