Based on such four perspectives as structural effect, technical effect, scale effect and policy effect of FDI, this paper analyzes the relationship between FDI and China’s green development. The research believes that the industrial structure effect, technical effect and policy effect of FDI have positive effect on China’s energy-conservation, emission reduction and green sustainable development, that FDI regional structure effect has different effects, has negative effect on the environment of China’s middle region but has active effect on the western regions, and that FDI scale effect reveals that some pollutants have surpassed the turning point of inverted U shape but some pollutants do not. Based on above research results, this paper points out policy suggestion for taking advantage of FDI to promote China’s green development from the perspective of making use of FDI to improve China’s environment and preventing complete competition model and pollution refuge effect.