This study investigates the association between political connection and capital structure in different firm life cycle stages for publicly listed firms in Taiwan for the period from 1996 to 2013. By using Dickinson’s (2011) firm life cycle stages and based on the distinction between operating, investing and financing cash flows, this study examines the effects of political connection on capital structure across the different life cycle stages. Our empirical results show that there is a significantly positive association between political connection and capital structure and demonstrate that firms tend to take advantage of their political connections for their capital structure decisions. In addition, the empirical results indicate that political connection firms tend to have a higher leverage in the introduction stage and a lower leverage in the mature stage and indicate that the life cycle stage is a discriminating element of firms’ leverage decisions.