With　the　economic　development　of　various　countries　entering　a　new　stage,　sustainable　development　has　become　a　focus　of　development　transformation.　It　is　well　known　that　outward　foreign　direct　investment　(OFDI)　drives　the　development　of　the　manufacturing　industry.　However,　the　OFDI’s　influence　mechanism　on　the　sustainable　development　of　the　manufacturing　industry　still　needs　to　be　clarified,　and　its　specific　action　path　requires　further　exploration.　This　study　thus　constructs　a　performance　evaluation　indicator　system　for　the　manufacturing　industry　from　sustainable　perspective.　Based　on　interprovincial　panel　data　of　China’s　30　provinces　from　2008　to　2017,　the　entropy　method　is　used　to　measure　and　analyse　the　sustainable　development　level　of　the　manufacturing　industry　in　each　province.　Second,　the　influence　of　OFDI　on　the　sustainable　development　level　of　manufacturing　industry　is　verified　using　a　fixed　effects　model.　Finally,　through　the　establishment　of　the　mediation　effect　and　threshold　effect　models,　we　conduct　in-depth　research　on　its　specific　mechanism,　testing　the　mediation　effect　of　technological　progress　and　threshold　effect　of　openness.　The　results　reveal　that　government　departments　can　enhance　the　sustainable　development　of　manufacturing　industry　by　promoting　technological　progress　through　OFDI.　Improving　the　degree　of　openness　can　also　promote　sustainable　development　in　the　manufacturing　industry.　©　2023　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.