1977年，吳三連先生八十歲壽辰前，家人與同仁為表彰其一生服務社會、貢獻卓著，倡議設立文藝獎基金會，吳三連先生本人亦樂於支持。於是，1978年1月30日「財團法人吳三連先生文藝獎基金會」正式成立，首屆由侯雨利任董事長，初期每年頒發文學獎與藝術獎，獎勵文藝人才。1989年起獎項擴增，並更名為「財團法人吳三連獎基金會」。 歷經多次調整，基金會逐步回歸獎掖文藝的初衷，並提升獎金與徵件方式，使競爭更為激烈。2018年四十週年後，改為兩年乙次頒獎，每名獎金達新台幣一百萬元。 截至2025年，共頒發44屆，計165位得主，包括文學獎64位、藝術獎73位，以及人文社會科學、自然科學、醫學、社會服務等類別。基金會持續透過推薦、提名與自薦等方式，獎勵具傑出成就與創造潛力、並認同台灣的個人或團體，成為台灣重要的文藝獎項之一。

Origins In 1977, on the eve of Wu San-Lien’s 80th birthday, his family and colleagues sought to honor his lifelong service and contributions by proposing the establishment of a cultural and arts award foundation. Wu himself welcomed the idea. Thus, on January 30, 1978, the Wu San-Lien Literary and Arts Awards Foundation was formally established, with Hou Yu-li as its first chairman. In its early years, the foundation awarded annual prizes in literature and the arts to encourage talent. In 1989, the scope of awards expanded, and the organization was renamed the Wu San-Lien Awards Foundation. Development and Present Status Through several adjustments, the foundation gradually returned to its original mission of supporting literature and the arts, while prize amounts and submission methods were increased, which in turn made competition more intense. Since its 40th anniversary in 2018, awards have been presented biennially, with each prize set at NT$1 million. As of 2025, the foundation has held 44 award cycles, honoring 165 recipients: 64 in literature, 73 in the arts, along with honorees in humanities and social sciences, natural sciences, medicine, social service, and group achievements. Continuing to operate through recommendations, nominations, and self-submissions, the foundation remains dedicated to recognizing individuals and organizations of outstanding accomplishment and creative potential who affirm their connection to Taiwan, making it one of the island’s most significant cultural awards.