In 1928 the Chinese Nationalist Party (KMT) unified the country, ending a period of national turmoil with constant fights between warlords. The Political Tutelage Guidelines were promulgated and the Nationalist Government was established in Nanking. The Legislative Yuan was founded in Nanking in the same year with 49 members for a term of two years; Mr. Han-min Hu and Mr. Shen Lin served as the very first President and Vice President respectively. The Political Tutelage era bore witness to the three-time reshufflings of the Legislative Yuan and the seats were increased to 194 for the Fourth Legislative Yuan. At the breakout of the Sino-Japanese War, the term of the legislators was extended to 14 years. It is during this time that the Legislative Yuan enacted such basic codes as Civil Law, Criminal Law, Land Law, Labor Law, Commercial Law, Household Registration Law, Budget Law, Publication Law, Law Governing Schools of All Levels and the first draft of the Republic of China Constitution, laying the organic and statutory foundation for the rule of law.

Due to the civil war between the Nationalists and the Communists, the Legislative Yuan moved with the central government to Taiwan in 1950. On February 24 of the same year, over 380 members of the First Legislative Yuan gathered for the first meeting of the fifth session at the Sun Yat-sen Hall in Taipei. Members voted to amend Organic Law of the Legislative Yuan and reduced the number of the standing committees to 12 at the same time it set up other ad hoc committees. In 1960 the Legislative Yuan moved to its current location on Chungshan South Road where it continued to grow and develop till this day.

The term of the first members was supposed to have expired by May 1951, if a major national crisis had not interrupted the election for the next Legislative Yuan. Accordingly, the Council of Grand Justices of the Judicial Yuan passed the No. 31 Interpretation of the Constitution to justify and legalize the continuous performance of functions and duties of the members elected in 1948. 11 additional members were elected in 1969 according to the "Temporary Provisions Effective During the Period of General National Mobilization for the Suppression of Communist Rebellion" to serve together with members of the First Legislative Yuan. In 1972, the Legislative Yuan was invigorated with 51 additional members of three-year term, elected in accordance with the amended "Temporary Provisions." In 1975, another 52 members were elected and sworn in on February 1st the following year. The election slated for December 1978 was suspended until November 20th, 1980,because of the severance of diplomatic ties between the Republic of China and the United States of America. The number of members elected was increased to 97 in accordance with the "Election and Recall Law During the Period of General National Mobilization for the Suppression of Communist Rebellion." 98 members in 1983, 100 members in 1986 and 130 members in 1989 were elected and sworn in on February 1stof 1984, 1987 and 1990 respectively.

On December 31, 1991, all veteran members elected in 1948 finally retired, and the legislative power was taken over by the 130 additional members elected in 1989. It was an important step for Taiwan in the process of democratization. In December 1992, 161 members of the Second Legislative Yuan were elected in compliance with the Additional Articles of the Constitution. Pursuant to the amendments to the Additional Articles of the Constitution, 164 members of the Third Legislative Yuan were elected in December 1995, and 225 members of the Fourth Legislative Yuan in December 1998. 225 members were elected to the Fifth Legislative Yuan in December 2001, and another 225 in December 2004 to the Sixth Legislative Yuan .On August 23rd, 2004 , a constitutional amendment was passed in the Legislative Yuan, seconded in the National Assembly on June 7th, 2005, and promulgated by the State President on June 10th. As a result, the number of legislators is reduced to 133 from the Seventh Legislative Yuan, and the term is changed from three to four years. The Legislative Yuan has truly become a unicameral parliament.