The museum first opened on December 24, 1983 at the former site of the United States Taiwan Defense Command (USTDC, dissolved in 1979).
The former site of the USTDC headquarter became the Taipei Fine Arts Museum in 1983.
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It was originally formed as the Formosa Liaison Center (founded in 1955 after the signature of the US-Taiwan Mutual Defense Pact of December 1954 and the first Straits crisis of Sept. 1954).
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A number of US units have been stationed at Tainan Air Base, including the 868th Tactical Missile Squadron from 1958 to 1962, which operated MGM-1 Matadors, probably under the ultimate control of the United States Taiwan Defense Command.