This paper analyzes the mechanism of two-way FDI coordinated development, and explains the promotion of two-way FDI coordinated development to green total factor productivity from the perspective of energy input and pollution output. Then, using the spatial Dobbin Model and based on the provincial panel data of China from 2003 to 2020, this paper empirically tests the spatial spillover effect between two-way FDI coordinated development and green total factor productivity. It is found that the coordinated development of two-way FDI has a positive effect on the green total factor productivity of local and neighboring areas. Furthermore, from the perspective of heterogeneity, it is found that the coordinated development of two-way FDI in the central region has the most significant promotion effect on green total factor productivity, followed by the eastern region, while the western region has the inhibitory effect. In addition, the abundance of resources will weaken the promotion effect of two-way FDI coordinated development on green total factor productivity. Therefore, we should promote the coordinated development of two-way FDI, and pay attention to adjusting the direction and types of foreign capital, so that the coordinated development of two-way FDI can better serve the sustainable development of China.