Abstract: This paper describes the development of Taiwan agricultural foreign direct investment(FDI) and elaborates its investment policies and existing issues. The features of Taiwan agricultural FDI are unstable, small in investment scale, concentrated in certain investment regions, and efficiencyseeking foreign investment motives. The issues faced are raising labor costs, regulatory uncertainty, and low administrative efficiency of local governments. In order to attract Taiwan agricultural FDI, it is important for Chinese Mainland to strengthen the guidance from the government, to improve the investment environment, to encourage agricultural investment to hightech sectors, and to establish the investment insurance and financial support systems.