迷途知返 is a formal idiom (Chengyu) but is widely understood and respected. It is used in situations that involve serious personal or ethical correction.
Encouragement and Advice: It's often used by elders, teachers, or friends to encourage someone who is making poor life choices (e.g., gambling, neglecting studies, falling in with a bad crowd). It’s a gentle but firm way of saying, “It's not too late to change.”
Media and Official Narratives: News reports and articles frequently use this term to describe individuals who have reformed, such as former criminals who have reintegrated into society or public figures who have corrected a major error in judgment.
Self-Reflection: A person might use it to describe their own past, expressing gratitude for having had the clarity to change their life's direction. For example, “年轻时我走了很多弯路,但幸运的是我最终迷途知返了。” (I took many wrong turns when I was young, but luckily I finally saw the light and returned to the right path.)
Connotation: The connotation is overwhelmingly positive. It praises the person's wisdom and strength of character. Calling someone's action an example of 迷途知返 is a compliment.