This paper examines the role of institutional investors in relation to firms' internationalization. In data on China's 2004-2007 listed manufacturing firms，we find that significant positive relationship between institutional ownership and internationalization，and internationalization is moreinterested by funds and QFl l. The results suggest that institutional shareholder activism is existing in Chinese fi rms，and institutional investors may help them to go abroad to carry on the“go-out”strategy. Finally，this paper gives corresponding recommendations to developdif erenttypes of institutional investors.