The transplantation and development of American Studies in Taiwan were part of U.S. cultural diplomacy during the Cold War era. Among the various disciplines transplanted, American literature has been the most fruitful one. American literary studies in Taiwan has undergone several phases. In the beginning, as a newcomer in the field of studies in comparison with the relatively early entry of Britishliterature, American literature did not gain much attention. Later on, as Taiwan was incorporated as an integral part of the containment policy of the U.S. government in the Cold War era, the importance of American literature and culture was increasingly recognized. Investments were made in the aspectsof translating literary works, publishing magazines, and training American literature scholars. As a result, more and more students were attracted to the field of American literature. The founding of the Institute of American Culture, Academia Sinica, in 1974 signified an important step in the institutionalization of academic research in American studies in Taiwan.<BR> A closer look at the development of American literary studies in Taiwan shows that before the mid-1970s, almost all efforts were devoted to the study of canonical writers and works. However, when Saul Bellow and Isaac Singer became Nobel laureates in 1976 and 1978 respectively, a few scholars shifted their focus to Jewish American literature. Later on, as ethnic American writers and female writers began to receive more recognition in the U.S., some scholars in Taiwan also began working on this emerging area, with a particular emphasis on African American literature. After the 1990s, a blooming interest for Chinese American literature has appeared. Consequently, a number of courses have been offered, conferences sponsored, papers presented and published, and theses written on this topic. Writers such as Maxine Hong Kingston and Toni Morrison (Nobel laureate in 1993) have gained wide recognition, becoming two of the most popular American writers in the academic field in Taiwan.<BR> As coordinator of a joint research project on British and American literary studies in Taiwan, in this paper I shall focus on the main interests and trends in the development of American literary studies in Taiwan and discuss their significance.