We　extend　the　panel　threshold　spatial　model　with　individual　fixed　effects　to　the　case　where　the　model　allows　partial　linearity.　Local　polynomial　spatial　two-stage　least　squares　estimation　(LPS2SLS)　is　proposed　to　obtain　estimators　of　the　model,　and　a　test　method　for　inferring　the　spatial　threshold　is　suggested.　The　simulation　studies　demonstrate　an　acceptable　finite　sample　performance　of　the　estimator　and　an　effective　threshold　inference.　©　2023　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.