Abstract: There is no doubt that it was the transfer of the Institute of History and Philology, Academia Sinica to Taiwan in the end of 1948 that has triggered the academic construction of humanities in modern Taiwan. This article is a fairly complete investigation into this process as well as its influence. Complicated mentalities and situations of the members of the Institute during this transfer are explored in detail. On the other hand, academic activities of the Institute in Taiwan are discussed with main focuses on archeology, ethnology and the influence of using methods of positivism.