Coral community at Tiaoshi in Nanwan Bay, southern Taiwan was originally dominated by branching Acropora corals which formed some monopolized patches. The community had been changed apparently on a local scale (<2 km) since 1994. Several Acropora patches were almost completely replaced by the solitary sea anemone Condylactis sp. after man-made and typhoon disturbances. However, sea anemones were apparently decreased in 2002. To understand the change of the benthic communities, three areas, including Anemone-dominated, Coral-recovery and Acropora-dominated, at depths of 6 to 10 m were selected and monitored by permanent transects from 2003 to 2005. Each site included three replicate patches. At Anemone-dominated area, the mean cover of sea anemone ranged from 24.6 to 15.3% and that of the hard corals was low with 1.4 to 3.9%. At Coral-recovery area, the mean cover of the hard corals was significantly increased from 21.3 to 38.9%, while macroalgae was significantly decreased from 20.7 to 6.1% and sea anemone was low with 1.4 to 3.0%. At Acropora-dominated area, the cover of the hard corals was ranged from 70.0 to 56.6% while macroalgae and anemone was 1.1 - 3.4% and 3.5 - 4.7%, respectively. In general, the results showed that anemone and macroalgae were decreased and corals were recovery. In addition, the diversity index of coral genera at Anemone-dominated area was higher due to coral recruitment in 2004 and 2005. The new recruits were dominated by Montipora stellata.