Cultural exchange is of great importance to the development of civilization. Lin Yutang,a literary giant,not only has significant impact on the development of Chinese modern literature,but also leaves a profound influence on the cultural exchange between China and the West. Lin has received western education since an early age. After reaching adulthood he attains accomplishment in Chinese traditional culture,through which he acquires deep understanding of both cultures. On the one hand,Lin’s description of Chinese society and Chinese people,high praise of humorous style,and innovation of translation concept,all contribute considerably to the communication between Chinese and western culture. On the other hand,its negative effect can’t be ignored. The false description in his works leaves a deep- rooted cultural prejudice against Chinese in westerners.