The Typhoon Forecast System (TFS) developed in the Central Weather Bureau in Taiwan is a limited-area forecast system dedicated for the prediction of tropical cyclones in the western Pacific. Since the starting of the operation run in 1994, the TFS has provided useful guidance to the forecasters on duty. Continuous effort has been made to improve the performance of the system and the yearly averaged 48 h forecast distance error of TFS is reduced from 421 km in 1994 to 264 km in 1997. Recent improvements of the system, including insertion of the beta-gyre, bogussing of multiple cyclones and extention of the forecast range to 72 h, will be reported.