In the past decades, Taiwan has achieved a remarkable economic success. The reasons for having such a great economic achievement has been many, but the educational development has been regarded as a crucial one. This paper, by reviewing the educational development in Taiwan in the past, mainly aims to give suggestions concerning the directions of education reform in Taiwan while moving into the 21st century. The paper can be briefly divided into five sections. At first, this paper starts with a summary of educational achievement in Taiwan in the past four decades. Second, this paper pinpoint several crucial educational problems in the current Taiwan society. Next, after exploring the major education reforms in Taiwan in the recent decades, this paper gives suggestions related to the directions of education reform in Taiwan at the time of across the century, in accordance with the expectations for the future educational development.