As a result of oblique collision, the Taiwan orogen propagates southward. The Hengchun peninsula in the southern tip of the Taiwan Central Range, preserving the youngest, the least deformed and the most complete accretionary prism sequences, allows therefore better understanding of the tectonic evolution of Taiwan orogen. On the Hengchun peninsula, four main stages of paleostress can be recognized by the analysis of brittle tectonics. After recording the first two stages of paleostress, rocks of the Hengchun peninsula (the Hengchun block) have undergone both tilting and counterclockwise rotation of about 90°;. The structural boundaries of this rotated Hengchun block are: the Kenting Mélange zone in the southwest, the Fongkang Fault in the north, and a submarine backthrust in the east. The angle of this rotation is principally calculated by the paleomagnetic analysis data and a physical model experiment. Through a systematic back-tilting and back-rotating restoration, the original orientations of the four paleostress stages of Hengchun peninsula are recognized. They are, from the ancient to the recent, a NW-SE extension, a combination of NW-SE transtension and NE-SW transpression, a NE-SW compression, and finally a combination of NE-SW transtension and NW-SE transpression. This result can be explained by a phenomenon of stress axes permutation, instead of a complex polyphase tectonism. This stress axes permutation is caused by the horizontal compression increase accompanying the propagation of the accretionary prism. Combining the tectonic and paleomagnetic data with paleocurrent and stratigraphic data enables us to reconstruct the tectonic evolution of the Hengchun peninsula. This reconstruction corresponds to the deformation history of a continental margin basin, from its opening to its intense deformation in the accretionary prism.