According to Article 6 of the Hakka Basic Act, the “National Hakka Development Plan” was promulgated, requiring all government agencies to promote ethnic mainstreaming. The Hakka Affairs Council, invoking ethnic mainstreaming as its rationale, has deemed the term “Hokloized Hakka” to be discriminatory and replaced it with “Hagdai,” thereby promoting the Hagdai policy. Drawing on the principles of multiculturalism and equality, this study further elaborates on the theory of ethnic mainstreaming and examines the Hagdai policy, reaching the following conclusions: (1) To expand the theoretical framework of ethnic mainstreaming, it is advisable to shift from an approach centered on substantive equality to one centered on diversity, equity, and inclusion. (2) The Hagdai policy is characterized by the renaming of Hokloized Hakka as Hagdai, the development of new policy instruments, a shift from Hakka language revitalization to the tracing of Hakka ancestry, and the shaping or deepening of Hakka identity among Hagdai. (3) Reflecting on ethnic mainstreaming theory, this study suggests that emerging directions for Hakka policy should include the inclusion of Hakka individuals who speak Hoklo and the development of a dual-ethnic or multi-ethnic identity framework.