General elections were held in Tuvalu on 26 March 1998. As there were no political parties, all candidates for the 12 seats ran as independents, with seven of the incumbents retaining their seats. Following the election, Bikenibeu Paeniu was re-elected Prime Minister.
On 18 December 1997 the parliament was dissolved and the general election was held on 26 March 1998. During the election campaign, candidates from the incumbent government and the opposition traded allegations of sexual and financial misconduct. The result of the election was that 7 existing members were returned (including Bikenibeu Paeniu, Otinielu Tausi, Ionatana Ionatana, Tomasi Puapua and Dr. Alesana Seluka); 2 members of previous parliaments were elected (including Kokea Malua to represent Nanumea); and 3 new members were elected: Lagitupu Tuilimu to represent Nanumea; Rev. Teleke Peleti Lauti, to represent Funafuti; and Samuelu Teo to represent Niutao. The returning opposition MPs were Koloa Talake and Faimalaga Luka. Former Prime Minister Kamuta Latasi, who represented Funafuti, lost his seat.
Bikenibeu Paeniu was re-elected prime minister on 8 April 1998 with a 10:2 vote against Koloa Talake.
Paeniu announced his cabinet, Funafuti MP Ionatana Ionatana remained Minister for Health, Women and Community Affairs and Minister for Education and Culture. Ionatana had also been the Minister for Tourism, Trade and Commerce; this portfolio was given to Nui MP Alesana Kleis Seluka, who retained his former portfolio of Finance and Economic Planning. MP for Nanumaga, Otinielu Tausi was moved to the Ministry of Works, Energy and Communications. Nanumea MP Kokea Malua, who returned to parliament in the election, was appointed Minister for Natural Resources and the Environment as well as Home Affairs and Rural Development. Malua also was appointed Deputy Prime Minister.Tomu Sione was appointed as Speaker of the parliament.