This paper makes a systematic examination of the changes taking place in various fields such as economy，politics，cultural and social development as well as external relations in Macao since the handover in 1999. The characteristics of Macao’s economy and the social problems caused by the rapid expansion of gaming industry are given a detailed analysis. The corresponding policies and measures taken by Macao SAR government to resolve these problems and their implications are discussed. It also summarizes the lessons and experience obtained in the past ten years in Macao and the new challenges ahead.