In this paper, my concern was the commercialization and marketization processes going on American higher education and their consequences. The commercialization of university is defined as an institution that is characterized by processes, decision criteria, expectations, organizational culture, and operating practices that are taken from, and have their origins in, the modern business corporation. Through a literature review, I examined the publicly available reforms of higher education institutions, to identify the strengths and weaknesses of the commercialization of higher education. In light of these concerns, I explored the following three topics: First, I reviewed the history of the commercialization of American higher education by tracing the changes in higher educational policies in the 1990s. Second, I identified the possibilities and limits of the commercialization of higher education. And, I examined what impact the emergence of the entrepreneurial/commercial university has on the structure and function of institutions, the production and dissemination of knowledge, and the nature of academic labor. The commercialization of university research was having a double-edged effect on higher education. On the one hand, the significant increase in the number of research products and patents was one more sign that research is viewed as a national competitiveness. However, the increase of the private use of the public fund-based research was signal that the commercialization of research has more negative effect on the public mission of higher education. The university campus has transformed into a commercial space like the mall.