Diagnostic testing for COVID-19 is critical for understanding epidemiology, contract-tracing, case management, and to repress the transmission of the SARS-CoV-2. The genetic sequence of SARS-CoV-2 was rapidly identified within few days since the first reported cases of COVID-19 and RT-PCR assays became rapidly available for COVID-19 diagnosis. While there are many commercially available RT-PCR assays available in the market, selection of highly sensitive, specific, and validated assays (particularly for the current variants) is most crucial for the accurate diagnosis of COVID-19. Development of rapid point of care tests (POCT) with better sensitivity and specificity is also the critical need. However, RT-PCR diagnosis carries a risk of false-negative results; therefore, additional serologic tests (antigen or antibody tests) are needed. The advanced deployment of laboratory capacity for rapid diagnosis of COVID-19 with different modalities (different assays, various clinical specimens, and timing of specimen collection) made early recognition of COVID-19 cases possible. This review summarizes various molecular diagnostic methods and advanced testing strategies and policies adopted in Taiwan for laboratory diagnosis of COVID-19.