The independent Legal Aid Committee is examining the existing system and how it can be best provided in the future.
Chairman Andrew Swithinbank said their focus is to promote a "fair, equitable and transparent" system.
Legal aid gives access to justice for those without the means to pay for it.
The first stage of the review will be a public consultation in the Isle of Man which will run until 28 November.
Mr Swithinbank said: "The focus of the committee is to promote access to justice in a manner which is fair, equitable, transparent, professional and which uses public resources carefully and effectively. "

The 41-year-old has been out of work since leaving Alloa in March.
Chris Barker, who has been in caretaker charge since Andy Scott was sacked in January, will remain with the Shots as player-assistant manager.
"Barry is ambitious and has great experience of developing young players," said chairman Shahid Azeem.
Smith began his playing career at Celtic and then spent 11 years at Dundee, captaining the side between 1997 and 2006.
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He returned to Dens Park as manager in 2010 and spent almost two and a half years in charge before parting company with the club in February 2013.
He was appointed Alloa manager in January 2014 but resigned last month, with the Wasps bottom of the Scottish Championship following a run of one win in 13 league matches.
"I see Aldershot as a great club with the same aspirations as myself. It felt an ideal fit," he said.
"We are looking to build a new squad and we have to build slowly. Ultimately we want to take the club back to the Football League."
Centre-back Barker, 35, won five of his 15 games in charge of the Hampshire side and led the Shots to an 18th-placed finish in the table.

About 20 buildings have collapsed, including a six-storey hotel in the city of Van, where dozens of aid workers and journalists were staying.
The quake late on Wednesday was centred 16km (10 miles) south of Van.
The same region was struck last month by a 7.2-magnitude earthquake which killed more than 600 people.
That earthquake struck a little north of Van but the city became the headquarters of the relief effort and has been flooded by aid workers and journalists, says the BBC's Jonathan Head in Istanbul.
The city was only lightly damaged, but some of the weakened buildings are now thought to have been brought down.
Television pictures from Van showed residents and rescuers trying to lift debris to free people trapped under ruined buildings.
Rescue workers were using high-powered lights to work through the night.
Parliamentary member Nazmi Gur said most of the buildings which collapsed were empty, but three had been occupied when the quake struck at 21:23 (19:23 GMT).
He said emergency teams were focusing on rescuing some 50 people believed to still be trapped.
Deputy Prime Minister Besir Atalay said the quake toppled a school and a number of mudbrick homes, as well as the hotel.
He said rescue teams were being sent to the region from the capital, Ankara, and other areas.
Some of the journalists trapped in the collapsed Bayram Hotel had sent text messages to colleagues asking to be rescued, Associated Press quoted a Turkish cameraman as saying.
Alper Kucuk from the Turkish Red Crescent told the BBC that 11 people had been rescued from the rubble of the hotel.
Mr Kucuk said the Red Crescent was sending two more planeloads of relief supplies to the area, including tents and blankets, as well as rescue personnel.
He described it as the biggest aftershock to hit the area and said it had frightened a lot of people.
Thousands of people were made homeless by the 23 October earthquake, with many still living in tents in the cold weather.
Mr Gur said many people are now leaving Van in search of a safer place.
Turkey is particularly vulnerable to earthquakes because it sits on major geological fault lines.
Two earthquakes in 1999 with a magnitude of more than 7 killed almost 20,000 people in densely populated parts of the north-west of the country.
A full review of the Isle of Man's legal aid system will be carried out for the first time in 14 years, the Manx government has said.
[NEXT_CONCEPT]
Aldershot Town have appointed former Dundee and Alloa Athletic boss Barry Smith as their new manager on a one-year rolling contract.
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A 5.6-magnitude earthquake has killed at least seven people in eastern Turkey, and trapped many more under collapsed buildings.