In the recent years，with the aggravation of the competition both at home and abroad，the development of the manufacturing industry in Guangdong Province relying on the traditional mode of production is facing severe challenges. The transformation and upgrading are imminent. According to the ratio data of the industrial added value to the total output value，it has been seen that the advantage of the manufacturing industry in Guangdong is gradually disappearing. Growth of its industrial added value is increasingly unable to keep up with the development of output value. As a main destination of inward foreign direct investment（FDI）and a major source of outbound direct investment in China，Guangdong should make full use of these two ways of FDI flows to accelerate updating its manufacturing industry. In view of this，this paper empirically analyzes the relation between two-way direct investment and upgrading of the manufacturing industry in Guangdong. This would provide an initial study to explore how to combine “Introduction” and “Going out” strategies to accelerate industrial upgrading.