More than 400 inmates, as well as 200 guards, gathered at Klongprem Central Prison as the tournament got underway with a match between Nigeria and Japan.
Teams from Japan, Nigeria, England, Italy, France, Germany, the US and Thailand will be taking part in the five-day tournament.
Klongprem houses 7,283 prisoners, including 1,153 foreigners, mainly on drug charges, and it is hoped that the event will ease tensions in the overcrowded facility.
The tournament began with the players from each seven-a-side team being led out accompanied by the prison marching band.
Break from routine
The Nigerian contingent, the country with the largest number of foreign prisoners at Klongprem, were preceded by four men dressed as boxers.
But it was the Japanese mascot who really caused a stir, a man dressed in full kimono, bearing the country's flag.
With sharpshooters looking on, the first match was played between Japan, as one of the World Cup's co-hosts, and Nigeria.
The Nigerians won 6-1 in a match that drew enthusiastic cheers from the watching inmates.
"The main objective for our first World Cup was to decrease tension among prisoners, to teach them about unity, and to decrease conflict," Siva Saengmanee, director general of the Corrections Department said before the tournament.
"This tournament is good because we can spend our time breaking the prison routine," said one Dutch inmate, Michael Kuyt.
The top two teams from each of two groups take part in the final with the victors being presented with a gold-painted wooden replica of the World Cup trophy - as well as extra toiletries.
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