Buddhism is one of the major religions of Taiwan. Taiwanese people predominantly practice Mahayana Buddhism, Confucian principles, Taoist traditions and local practices. Roles for religious specialists from both Buddhist and Taoist traditions exist on special occasions such as for childbirth and funerals. Of these, a smaller number identify more specifically with Chinese Buddhist teachings and institutions, without necessarily eschewing practices from other Asian traditions.

Following the Chinese Civil War, Buddhism experienced a rapid increase in popularity in Taiwan, attributed to Taiwan's economic miracle following the war and several major Buddhist organizations promoting modern values such as equality, freedom and reason, which was attractive to the country's growing middle class. Taiwanese Buddhist institutions are known for their involvement in secular society, including the providing of a number of public goods and services such as colleges, hospitals and disaster relief.

As of 2021 around 19.8% of the population believes in Buddhism.

Taiwanese government statistics distinguish Buddhism from Taoism, giving almost equal numbers for both. In 2005, the census recorded 8 million Buddhists and 7.6 million Taoists, out of a total population of 23 million. Many of Taiwan's self-declared "Taoists" actually observe the more syncretistic practices associated with Chinese traditional religion which is based on Buddhism. Self-avowed Buddhists may also be adherents of more localized faiths such as Yiguandao, which also emphasize Buddhist figures like Guanyin or Maitreya and espouse vegetarianism.

Distinguishing features of Taiwanese Buddhism is the emphasis on the practice of vegetarianism, the influence of Humanistic Buddhism, and the prominence of large centralized Buddhist organizations. Four Buddhist teachers who founded institutions that are particularly influential are popularly referred to as the "Four Heavenly Kings of Taiwanese Buddhism", one for each cardinal direction, with their corresponding institutions referred to as the "Four Great Mountains". They are:

Buddhism was brought to Taiwan in the era of Dutch colonialism by settlers from the Chinese provinces of Fujian and Guangdong. The Dutch, who controlled Taiwan from 1624 until 1663, discouraged Buddhism, since idol worship was punishable by public flogging and banishment by Dutch law at the time. In 1662, Koxinga drove the Dutch from Taiwan. His son Zheng Jing established the first Buddhist temple in Taiwan. During this period, Buddhist practice was not pervasive, with Buddhist monks only performing funeral and memorial services.

When the Qing dynasty took control of Taiwan in 1683, large numbers of monks came from Fujian and Guangdong provinces to establish temples, particularly those devoted to Guanyin, and a number of different Buddhist sects flourished. Monastic Buddhism, however, did not arrive until the 1800s.

During the Japanese rule of Taiwan (1895–1945), many schools of Japanese Buddhism came to Taiwan to propagate their Buddhism teachings, such as Kegon (華厳宗), Tendai (天台宗), Shingon Buddhism (真言宗), Rinzai school (臨済宗), Sōtō (曹洞宗), Jōdo shū (浄土宗), Jōdo Shinshū (浄土真宗) and Nichiren Buddhism (日蓮宗). The total number of Japanese Buddhist groups that were introduced to Taiwan could be categorized into 14 sects under 8 schools. During the same period, most Taiwan Buddhist temples came to affiliate with one of four central temples, called "Four Holy Mountains" (台灣四大名山):