Domestic developments are often interlocked with the international relationship of the nations involved. The Republic of China on Taiwan that has been important subject of study for her role in international politics in the Pacific region for many years, has undergone a drastic internal transformation for the past four decades. The rapid economic provided the base of the political democratization which in turn created the demand of autonomy in international politics. It is the intention of this paper to trace the domestic developments and its foreign policies of the Republic in order to provide a better understanding of Taiwan's role in the cross-Taiwan straits relations and its impact on the international community.