a municipal (national) court in which the legality of captures of goods and vessels at sea and related questions are determined.

During time of war private enemy ships and neutral merchantmen carrying contraband are subject to seizure. Title to such vessels and their cargoes does not immediately pass to the captor state but, under international law, must be adjudicated by the captor state's prize court, which may condemn them as lawful prizes. Enemy warships, enemy public ships (such as prison ships), and neutral ships participating in hostilities, on the other hand, are subject to capture. Title in them passes immediately to the captor state and is not subject to condemnation by a prize court.

Although prize courts are municipal courts, and their character and organization are thus determined by national tradition and law, they apply customary and conventional international law. There is a practice of long standing for belligerents, at the outbreak of war, to enact prize law through statutory legislation; such enactments are presumed to be declaratory of international law but are, in any event, binding on the courts.

In the 20th century, unrestricted sea warfare involving the destruction of merchant shipping has reduced the role of prize courts. The United States has held no prize courts since 1899 for the additional reason of its more liberal policy of requisitioning foreign vessels with compensation rather than appropriating them as prizes. See also angary; contraband.