The Computer-Assisted Instrucation (CAI) system, initiated by Tamkang University in Taiwan, has gradually aroused wide attention and interest, and is commonly accepted by the educational circles here, especially among universities. Government agencies such as Ministry of Education or National Science Council also aggressively support and encourage its development, either by sending internees abroad every year for advanced training, or by promoting CAI-related activities in all levels. This article introduces brie fly the definition and characteristics of CAI, with a report to its current development in either government and private sectors, or in higher education; and, finally, its prospective trends in Taiwan are discussed and concluded.