Founded in 1986 by Hsu Hsin-liang, Hsieh Tsung-min and Lin Shui-chuan,[9][10] a year prior to the end of martial law, the DPP is one of two major parties in Taiwan, the other being the Kuomintang (KMT), a Chinese nationalist party previously ruling the country as a one-party state, and its smaller allies in the Pan-Blue Coalition.

It has traditionally been associated with a strong advocacy of human rights, emerging against the authoritarian White Terror that was initiated by the KMT, as well as the promotion of Taiwanese nationalism and identity.

The DPP's roots were in the Tangwai movement, which formed in opposition to the Kuomintang's one-party authoritarian rule under the "party-state" system during martial law.

[20] Despite its lack of electoral success, the pressure that the DPP created on the ruling KMT via its demands are widely credited in the political reforms of the 1990s, most notably the direct popular election of Republic of China's president and all representatives in the National Assembly and Legislative Yuan, as well the ability to open discuss events from the past such as the February 28 Incident and its long aftermath of martial law, and space for a greater variety of political views and advocacy.

In 1996, DPP Chairman Shih Ming-teh united with the New Party to run for the President of the Legislative Yuan, but lost by one vote.

Post-democratization, the DPP shifted their focus to anti-corruption issues, in particular regarding KMT connections to organized crime as well as "party assets" illegally acquired from the government during martial law.

The DPP won the presidency with the election of Chen Shui-bian in March 2000 with a plurality, due to Pan-Blue voters splitting their vote between the Kuomintang and independent candidate James Soong, ending 91 years of KMT rule in the Republic of China.

Chen softened the party's stance on independence to appeal to moderate voters, appease the United States, and placate China.

He also promised not to change the ROC state symbols or declare formal independence as long as the People's Republic of China did not attack Taiwan.

[21] In 2003, Chen announced a campaign to draft a referendum law as well as a new constitution, a move which appealed to the fundamentalist wing of the DPP.

By now, the New Tide faction had begun to favor pragmatic approaches to their pro-independence goals and dominated decision-making positions within the party.

Presidential Office Secretary-General Yu Shyi-kun was elected in a three-way race against legislator Chai Trong-rong and Wong Chin-chu with 54.4% of the vote.

[22] On 30 September 2007, the DPP approved a resolution asserting a separate identity from China and called for the enactment of a new constitution for a "normal nation".

It struck an accommodating tone by advocating general use of "Taiwan" as the country's name without calling for abandonment of the name Republic of China.

The first months since backed to the opposition were dominated by press coverage of the travails of Chen Shui-bian and his wife Wu Shu-jen.

Chairperson Tsai insisted on the need for the party to remember its history, defend the Republic of China's sovereignty and national security, and maintain its confidence.

[25][26] The party re-emerged as a voice in Taiwan's political debate when Ma's administration reached the end of its first year in office.

[29] President Tsai won reelection in the 2020 Taiwanese presidential election on 11 January 2020, and the Democratic Progressive Party retained its legislative majority, winning 61 seats.

Furthermore, its platform includes a legal and political order based on human rights and democracy; balanced economic and financial administration; fair and open social welfare; educational and cultural reform; and, independent defense and peaceful foreign policy with closer ties to United States and Japan.

Although the differences tend to be portrayed in polarized terms, both major coalitions have developed modified, nuanced and often complex positions.

At the other end of the political spectrum, the acceptance by the DPP of the symbols of the Republic of China is opposed by the Taiwan Solidarity Union.

[51][52] The DPP has been plagued by frequent corruption scandals which has increased feeling amongst voters that fraud is an acceptable practice within the party.

[53][54] [55] Former DPP president of Taiwan Chen Shui-bian has also been involved in a raft of corruption scandals that continue to affect the party's reputation.

Chen was acquitted of embezzling millions of New Taiwan Dollars from a special presidential fund while he was in power, but was found guilty of money laundering and forging documents, and was given an additional two-year sentence.

[56] As Taiwan President Tsai Ing-wen prepared to leave office in 2024, she declined to comment on whether or not she would pardon Chen of his corruption convictions.