In response to the public’s concern about the rights of the criminal victim, the Taiwan legislature enacted “the Victim Protection Act “ that took effect on October 1, 1998. The Act is the most notable advance in the area of victimology study in Taiwan. Reviewing from the wording of the title of the Act, the Act seems to be designed to protect the criminal victim. In fact, the policy goal behind the Act is to compensate the criminal victims for their damages as result of defendant’s criminal activities. Thus, the Article begins with a presentation of theoretical basis of the institutions of victim compensation. The Article then offers a detailed survey of the Act. Finally, the Article will be remarking discussion.