Sugar industry played an important role in Taiwan's historical development. The growing, processing, and marketing of cane sugar had a profound impact on various elements of the economy and agrarian structure, including land use, agricultural modernization, farm prices and income, and employment. Before the Dutch arrived in Taiwan (1624), sugar was already a principal export item. Through the Dutch and the Cheng periods, sugar industry grew rapidly, by the end of the 17th century sugar export reached 18,000 metric tons a year. In the 19th century, toward the close of the Ch'ing era, western colonial powers sparked a considerable expansion on sugar industry in Taiwan. The basic statistics of sugar industry indicated remarkable growth during the periods of Japanese and Chinese rule. This article treated the Japanese and Chinese eras separately in a traditional historical approach. The essential patterns and characteristics of the sugar industry can be summarized with six aspects: centralized control, the regional system,the role of the farmer, the guaranteed price system, the sugar sharing system and extension activities. This article emphasized that the character of Taiwan's sugar industry, practically in all respects, was established under Japanese rule, not under the Nationalist era which followed.