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The purpose of the article is to study the formation of the covert investigation institution in the criminal justice system of Ukraine. The subject of research is the prerequisites for the establishment of this institution in Ukraine. Research methods are chosen considering the stated purpose and tasks, object, and topic of the study. Consequently, the article uses general and specific scientific methods. Among the results of the research, the realization of an analysis of the international experience of operation of similar institutions in developed countries stands out. Problematic issues of the formation of the covert investigation institution in Ukraine are identified. In conclusion, it is noted that Ukraine has opted for a covert investigation system, the mechanism of which is more geared towards solving crimes - "incidents", when it is not necessary to hide the fact of the investigation. In terms of the practical implications, the peculiarities of the operation of the covert investigation institution in the criminal justice system of Ukraine are highlighted and, based on the investigation carried out, the definition of the perpetrators of the mentioned legal category is offered.