The Educational Fundamental Law was published by the president on June 23, 1999, which also attracted the public's attention. It is very important to probe the meanings of the Educational Fundamental Law in order to deal with the educational development in Taiwan. The purpose of this paper is to explore the implications of the Educational Fundamental Law on educational innovation. There are four parts in this paper. Firstly, the process of legislation is explained. Then, the meanings of the Educational Fundamental Law are analyzed. Thirdly, the implications of the Educational Fundamental Law on educational innovation are proposed. Finally, to strengthen the process of implementing the law is emphasized.