Objective: This study investigated the prevalence of and factors associated with amalgam restorations of posterior teeth in Taiwan. Method: The authors analyzed the dental data regarding direct restorations of posterior teeth from the National Health Insurance Research Database of 1997, which was the first nationwide data available. The chi-square test and analysis of variance was used to compare the characteristics of the teeth, patients, dentists, and dental treatment settings between amalgam and composite restorations. The multivariate analysis was applied to obtain the Generalized Estimating Equation estimation for associations of multiple factors with amalgam restorations, taking into account the intra-individual correlation of teeth restored. Results: Amalgam was used in 53.3% of the direct restorations of posterior teeth. When all the important factors were assessed simultaneously, characteristics significantly associated with more amalgam restorations were: dentists aged 43 years and above, patients aged 1-22 years, primary molars, two- or three-surface cavity, regions with higher number of population served per dentist, and dental clinic. Conclusion: Doctors' age, patients' age, type of dental treatment settings, population served per dentist, type of tooth, and number of surfaces restored were significantly associated with amalgam restorations in Taiwan.