Dylan Mamarika, Rogan Lalara and Jamian Bara Bara allegedly absconded from Darwin Correctional Precinct in Holtze about 10.30pm on Wednesday.
The trio remains at large in the Darwin community and a police task force has been set up to find them.
Detective Senior Sergeant Karl Day says the men triggered a door alarm to a cottage in a low security compound, alerting correctional officers to the break out.
"Subsequent investigations revealed three prisoners had escaped," he told reporters on Thursday.
"In the cottage area they have scaled a fence and made good their escape."
Det Snr Sgt Day said two of the men were later spotted "running" in nearby Palmerston at 10.30am on Thursday.
"They were still wearing their yellow shirts that they had on when they escaped," he said.
Mamarika, 29, and Lalara, 33, have medium builds and short black hair. Bara Bara, 38, has a medium build and short black hair.Â
Det Snr Sgt Day said the men had family in Darwin and Groote Island.
He said two of the men had very little time left to serve of their sentences and it was surprising they had escaped.
Officers from the major crime and serious crime squads are searching for the men.
"They are currently out in the community now liaising with various family members and community sources attempting to locate the escapees," Det Snr Sgt Day said.
"Anytime prisoners escape comes with some concerning levels."
People with information should contact Crime Stoppers.
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