Language contact is one of the major factors that lead to language change. In Taiwan, the long-term and frequent contact between Mandarin and Taiwanese has resulted in various changes, which are still ongoing, in both languages at phonetic, lexical, and syntactic levels. This study aims to investigate the phonetic variations in Taiwanese, which are induced by its contact with Mandarin. It is proposed that Taiwanese has been phonetically influenced by Mandarin in two aspects. First, Mandarin has played a role on the leveling between the phonetic variants of Tai-uan-iu-se-im, or Taiwanese predominant accents. The ki/ku variable in Taiwanese is no longer a pure Tsiang-tsiu/Tsuan-tsiu dialectal distinction among young Taiwanese speakers; the corresponding pronunciation in Mandarin has more influence on the selection from [i] and [u] variants. Second, the colloquial and literary pronunciations in Taiwanese have been blurred. The corresponding Mandarin pronunciation, to certain degrees, determines the selection from these two pronunciations, as in the Tsiang-tsiu/Tsuan-tsiu contrast mentioned above. The literary pronunciation, in general, is preferred by the young speakers as it is phonetically more similar to Mandarin.