Abstract: Taiwan’s land reform in the early 1950s was a relatively successful and influential progressive reform. From the perspectives of fairness and efficiency, the reason of agricultural land reform in Taiwan and its development process were explored, and the economic performance of agricultural land reform in Taiwan was demonstrated by using the relevant theories of economics. Then, by combining with relevant historical materials, it was analyzed that how agricultural land reform in Taiwan gave consideration to the interests of the landlords and farmers, thus to illustrate that the land problem face in the process of Taiwan’s modernization rooted in the compromise of agricultural land reform.