Shabana Mahmood warned criminals will exploit the prison capacity crisis, with looters taking to the streets unless the Government takes emergency action.
Under a temporary scheme starting in September convicts will be released after serving 40% of their sentence, rather than halfway through.
The programme was announced after ministers were warned that the Prison Service could run out of cells within weeks.
Violent offenders will be among those freed, provided they are serving sentences under four years and are no longer deemed a risk to the public.
However, justice chiefs insist "serious sexual and violent" criminals will remain behind bars.
Speaking at HMP Five Wells in Northamptonshire, Ms Mahmood said: "There is now only one way to avert disaster. When prisons are full, violence rises - putting prison officers on the front line at risk.
"When no cells are available, suspects cannot be held in custody.
"This means van-loads of dangerous people circling the country, with nowhere to go.
"The police would have to use their cells as a prison overflow, keeping officers off the streets.
"Soon, the courts would grind to a halt, unable to hold trials.
"With officers unable to act, criminals could do whatever they want, without consequence. We could see looters running amok, smashing in windows, robbing shops and setting neighbourhoods alight.
"In short, if we fail to act now, we face the collapse of the criminal justice system. And a total breakdown of law and order." Ms Mahmood also attacked former prime minister Rishi Sunak and his team for failing to prevent the crisis from developing.
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