This　paper　investigates　the　influence　of　host　and　home　country　institutional　conditions　on　foreign　institutional　investment.　Utilizing　longitudinal　and　multilevel　data　on　foreign　institutional　investment　in　Chinese　listed　firms　between　2004　and　2017,　we　document　that　foreign　institutional　investment　decreases　with　increasing　economic　policy　uncertainty　in　the　host　nation.　We　also　find　that　foreign　institutional　investors　respond　more　strongly　to　local　economic　policy　uncertainty　when　their　home　nations　are　closer　to　China,　are　culturally　and　administratively　similar　to　China,　operate　a　smaller　domestic　stock　market,　and　have　weaker　minority　shareholder　protection.　The　impact　of　economic　policy　uncertainty　on　foreign　institutional　investment　is　also　stronger　when　the　host　nation　institution　is　more　developed　and　open..　Moreover,　we　reveal　the　mediating　role　of　stock　market　volatility　on　this　relationship.　Overall,　we　document　that　foreign　institutional　investment　is　not　only　shaped　by　institutional　conditions　in　the　host　country　but　also　influenced　by　home　country　characteristics　that　define　geographical　and　institutional　distance　between　home　and　host　nations.