Nowadays in Taiwan, research of public policy establishment procedures has become a very important issue to all government authorities, private organizations and general public. Such trend surely is something that school physical Education can and shall overlook. In this document, reasons for studying the establishment of school physical education policy were listed first before describing the purposes of policies, public policies and policy establishment. Furthermore, analysis on the selection of method for establishing school physical education policies was made and, consequently, a method was proposed. Finally, a theoretical model for establishment of school physical education policies was also suggested. Therefore, school physical education policies were established in three stages, including policy problem formation, policy planning and policy legalization. It is hoped that investigations in this document will help establish school physical education policies more effectively and promote the “Decision Quality” and “Competitiveness” of school physical education.