This paper compares the differences in the experiences of institutionalizing representative workers' participation between Germany and Taiwan and attempts to shed light on the role of social dialogue in the developments of industrial democracy. Our model posits that the successful developments of representative workers' participation depend upon the productive social dialogue in which industrial relations actors interact to negotiate new rules and regulations governing labor relations in a constructive and reciprocal way. For such dialogue to take place, favorable institutional environments should exist to facilitate mutual trust and agreements among industrial relations parties. German postwar experiences in representative workers' participation seem to support our arguments, while the case of Taiwan tends to imply that a lack of such dialogue and complementary institutional factors lead to unsuccessful democratic developments in industrial relations.