The purpose of this paper is to re-examine the relationship between museums and cultural and creative industries (CCI) in Taiwan by extending earlier research on the subject and exploring recent developments in CCI in relation to museums in Taiwan. A broad overview of CCI policies adopted by the government of Taiwan since the early 2000s is provided and the differences between CCI in the UK and Taiwan are discussed. It is proposed that some CCI activities promoted by the government appeal largely to people of higher incomes. In addition, the author argues that Taiwan is limited to CCI activities mainly related to creativity. CCI development in relation to museums is discussed in detail and the issue of “National Palace Museum Exceptionalism” is explored. The National Palace Museum’s highly privileged position as a “superstar museum” and its political importance have led to the development of CCI programs that are not applicable to other museums in Taiwan. The author also proposes that medium- and small-scale museum contributions to CCI development are limited or intangible due to lack of capacity and resources. Nevertheless, CCI development in general provides a dynamic environment for small museums to rethink their cultural and economic positions. Lastly, recent CCI development efforts in museums have prompted blockbuster exhibitions leading to more commercial and promotional activities by the private sector as event co-organizers. CCI development has justified and deepened commercial activities for museums, leading to a broad mixture of high culture, popular culture and entertainment/leisure.