This paper studies the relationship between technology spillovers from FDI and absorptive capacity based on technology level. The result shows that the higher absorptive capacity the host counties have, the more spillovers they can get from FDI. However, if the technology level of host country beyond some critical level, the effect of technology spillovers starts to decline, which indicates that there is a non -linear relationship between absorptive capacity and the efficiency of spillovers from FDI.