This paper seeks to provide an historical analysis, identifying the changes of those external and international political developments in Taiwan reflected in the recent history of sport policies, in particular the physical education arena. It argues that Taiwan's society moves from a pre-modern form at the time of KMT's arrival in 1949 through rapid economic development and authoritarian political control, to an advanced economy and an emerging multi-party democracy. Shifts in the role and nature of the Taiwan state have had a profound effect on the structure, the operation of the government, and the provision of sport and physical education policy. The development of physical education policy has thus been transformed in some socio-political terms from a militaristic preparedness and defence, seeking of international diplomatic recognition and national prestige, to new emphases placed on both the sport's leisure meaning and national identity.