It is not widely recognized that Taiwan has the issue of illiteracy. Adult literacy education is often considered as an opportunity for older adults, who were unable to attend school education caused by the political and economic fluctuations that occurred in during 1940s, to "catch up". This view confuses the school entrance rate with the literacy rate and implies a static view of literacy. This paper echoes the vision of the United Nations Literacy Decade: Literacy for All, and addresses the idea that literacy is about more than reading and writing; it is about how we communicate in society; it is about knowledge, language and culture. Particularly, literacy learning is a process of lifelong learning and the society is changing dramatically. Adult literacy education has to face the challenges both from the domestic ethnic conflicts and the international competition. In this context, it first describes the language and adult literacy education policies and initiatives, including Mandarin Campaign, Fundamental Supplementary Education Program, Adult Basic Education Program and Foreign Language for All, that have been made so far since 1940's, and then analyzes the rationale beyond and the deeper issues, critically. It concludes that literacy is simultaneously both a potential liberator and a potential weapon of oppression in Taiwan. Even though the contribution of Mandarin Campaign is evidential, the underlying nationalism in turn has harmed the cohesion of different ethnic groups and created both a cultural vacuum and rootless identity. At this critical point in history, Taiwan's adult literacy, especially, requires renewed visions and modalities of operations procedures and mechanisms.