The presidential elections held in Taiwan on March 23, 1996, marked a historic milestone as the country's first direct presidential elections. Previously, the president and vice president were selected by deputies of the National Assembly. Lee Teng-hui, the incumbent and candidate of the ruling Kuomintang, won the election with 54% of the votes. His victory came in spite of attempts by the People's Republic of China (PRC) to intimidate Taiwanese voters through missile tests, a tactic that ultimately failed. The voter turnout was a significant 76.0%.

In the run-up to the elections, the People's Liberation Army of China fired ballistic missiles into waters near Taiwanese ports of Keelung and Kaohsiung between March 8 and March 15. The action was meant to deter Taiwanese voters from supporting Lee and his running mate, Peng, whom Beijing accused of seeking to "divide the motherland." Other political figures, like Chen Li-an, even warned that voting for Lee would be choosing war. The crisis was defused when the United States deployed two aircraft carrier battle groups near Taiwan.

The election not only represented a win for Lee but also showcased him as a strong leader capable of standing up to the PRC. The incident swayed many voters, including those from southern Taiwan who favored independence, to cast their ballots for Lee. According to the United Daily News, a Taipei newspaper, up to 14 to 15% of Lee's 54% vote share was contributed by supporters of the Democratic Progressive Party (DPP), demonstrating the broad appeal he had garnered due to his handling of the crisis.