School psychology as a recent mental health service profession in Taiwan has drawn attention and interest, especially after the Student Guidance and Counseling Act (SGCA) was passed by the Taiwanese government in 2014. This article reviews school psychology's developmental history in Taiwan, introduces governmental policies' influences on its current service delivery framework, identifies contemporary challenges, and analyzes potential directions for its future development. To meet the needs of culturally diverse students and their families in Taiwan, the findings suggest adopting an ecological systems perspective for case conceptualization and strengthening cross-disciplinary collaboration in multi-tiered systems of support, which can result in shared work responsibilities and consistent responses to student needs. Also, more comprehensive training is recommended to expand the current scope of school psychological services and facilitate systemic collaboration within the educational system. It is hoped the knowledge presented in this article can contribute to continuous development and policy improvement for school psychological training and practice in Taiwan.