President Tsai Ing-wen has championed the idea of "asymmetric warfare" to make Taiwan's forces more mobile and harder to attack.
Taiwan's armed forces are well-equipped but still dwarfed by China's.
Among the drones on display was an attack drone with loitering munitions that can cruise towards a target before plummeting at velocity and detonating on impact.
China has sent its drones to areas close to Taiwan to test its responses, the island's defence ministry has said.
Last year, Taiwan shot down a civilian drone that entered its airspace near an islet off the Chinese coast.
The island's defence ministry said in a report to parliament this week, a copy of which was reviewed by Reuters, that China was quickly building up its combat capacity with drones, including swarms of flying robots.
In response, Taiwan will focus on developing its combat and surveillance drones, as well as anti-drone systems, the ministry said.
