Abstract: In the background of talent internationalization and Chinese rapid growing OFDI, this paper empirically examines the relationship between talent internationalization and firms’ OFDI behavior in China using detailed firm-level data of medium and large manufacturing enterprises between 1998 and 2013. Heterogeneity analysis shows that, the effect of talent internationalization on OFDI is more pronounced for firms with high level of technological innovation, and whose motive is R&D and vertical production. Finally, the impact of talent internationalization on OFDI is restricted by the institutional distance between China and the investment destination countries. This paper has important reference value for China to deal with the globalization of intellectual flow and the “going out” strategy of enterprises.