Shandong province is the large economic province of China, has an important position in China. The decade since 2003, significant changes has been showed in the distribution industry of Shandong, the share of GDP, and the share of the primary sector has continued to decline, while the second and tertiary industry in the share of GDP show a gradual upward trend, more and more reasonable industrial structures. In the process of foreign investment, foreign investment in Shandong province, brings abundant capital and advanced production and management technologies, driven by the province-owned enterprises to improve my technique, so as to promote the upgrading in industrial structure. This article analyzes the status of other aspects of the utility and the impact of foreign investment, and its impact on the industrial structure in Shandong province by the method of empirical analysis that foreign multinational investment of upgrading the status of Shandong province in the international economic competition has important role.