This thesis report analyzes the history of diplomatic relations between the Republic of China (ROC), Taiwan and the Republic of the Marshall Islands (RMI), followed by the examination of Taiwan’s foreign aid and contribution to the country. It provides three important questions that help us understand how the Taiwan’s assistance to the Marshall Islands are operated and what challenges they are facing. With the complexity of Taiwan’s global status, this report leads us to further understand the vital role of Taiwan in the international community, particularly its significant contribution toward the underdeveloped countries. In this study, we are going to use the case of Taiwan’s foreign aid policies to the Marshall Islands.