This study explores how “New Taiwanese” was offered and constructed as a viable identity category for people in Taiwan through the news discourse of the United Daily News (UDN) referenced in 922 news reports between 1987 and 2007. From the term’s first appearance in 1987, its promulgation as official discourse by the KMT government primarily between 1998 and 2000, to the end of 2007, “New Taiwanese” as an identity project (Laitin, 1998) has been utilized and challenged by political players of various camps at different junctures to achieve their political agenda. It has also gradually transformed its references and modified its meanings to join in the construction of Taiwan’s national identity. As a mediating concept for “Taiwanese” and “Chinese,” “New Taiwanese” has maintained a precarious and ambivalent positioning, having to constantly adjust to shifting ethnic relations of Taiwanese people and their complex, in-flux array of national identifications.