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Prostitution in Cambodia is illegal, but prevalent. A Cambodian Law on Suppression of Human Trafficking and Sexual Exploitation  has proven controversial, with international concerns regarding human rights abuses resulting from it, such as outlined in the Human Rights Watch report.
It punishes the trafficking of people, the managing of prostitutes and the maintaining of a brothel, as well as soliciting in public and distributing pornography. The mere act of exchanging sex for money is not outlawed. It lobbies for legal and human rights and better working conditions for sex workers and aims to amend the law. Sexual exchange has existed in Cambodia for centuries, but the events of the 20th century created a very unstable situation.
During the Khmer Rouge years — prostitution was completely banned and punishable by death resulting in its virtual elimination in a highly authoritarian social system.
Under the new State of Cambodia — commercial sex started to re-emerge. After the dismantlement of the State of Cambodia, about 20, male troops and civilian personnel of the United Nations Transitional Authority in Cambodia UNTAC — arrived in Cambodia together with many NGOs and business interests from abroad, creating a new market for sexual services in a very poor country. UNTAC did little to stem the growth of prostitution in the country.
Norodom Sihanouk had many reservations about the whole UNTAC operation, for the massive presence of UN foreign troops led in his eyes to the abuse and dishonor of Cambodian women. Following UNTAC withdrawal in August , demand was reduced, and a drop in the number of commercial sex establishments and sex workers was apparent.