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Rishi Sunak told the Commons the government will bring in legislation to reverse the prosecutions of 736 sub-postmasters and mistresses based on the faulty Horizon IT system.
The PM also said the Post Office victims "must get justice and compensation".
There have been growing calls for action since an ITV drama which aired last week.
He was answering Tory MP Lee Anderson who called for Lib Dem leader and former Post Office Minister Sir Ed Davey to "clear his desk, clear his diary and clear off" over his handling of the issue in the coalition years.
Sunak announces new law to 'swiftly' exonerate Post Office victims