Police have now located all three men who escaped from the low-risk section of the Darwin Correctional Precinct overnight on Wednesday.
Dylan Mamarika, 29, Rogan Lalara, 33, and Jamian Bara Bara, 38, left the low-security cottages at the precinct around 10:40pm on Wednesday night.
Police located Mamarika and Lalara on Thursdsay afternoon, but Bara Bara remained on the run.
Bara Bara was found and arrested on Friday afternoon.
"We would like to thank the public for their assistance," Detective Senior Sergeant Karl Day said.
Senior Sergeant Day said at a press conference on Thursday that the men tripped an alarm when leaving the cottages, which provide inmates with more freedom than standard prison facilities.
"Correctional officers were alerted to some door activation at the cottage area, subsequent investigations revealed three prisoners had escaped," he said.
"Obviously a door was opened, when it shouldn't have been opened, and in the cottage area from there, they've scaled a fence and made good their escape."
Police earlier on Thursday established a taskforce, involving members of its serious crime and intelligence squads, to locate the men.
"[Officers] are currently out in the community now liaising with various family members and community sources," Senior Sergeant Day said.
He said the three men "definitely" have links to Darwin and other communities.
Escapees seen in suburbia
After leaving the facility, police said, two of the men were seen in Palmerston, 15 minutes south of Darwin, "running" around a residential area.
"We had a sighting of two of the males about 10:30 this morning," Senior Sergeant Day said.
"They were still wearing their yellow shirts that they had on when they escaped."
Authorities did not say what crimes the three men had committed to end up in jail, but Senior Sergeant Day said some of them had "very small amounts left on their sentences".