Based on the date of “Population Situation and Intention Survey of the Elderly in Shanghai 2013”, this article focuses on observing two-way intergenerational exchange and the life satisfaction of elderly people in urban family by cross-tabulation, and then observing the influence of intergenerational exchange on their life satisfaction by logistic regression. The analysis result shows that the intergenerational exchange has changed with a downward tendency. The support from the elderly to children is higher than the support from children to the elderly. There is a significant correlation between the support from the elderly to children and their life satisfaction. The elderly show a spirit of altruism in family life. Raising grandchildren for children will improve their own life satisfaction. While, there is no significant correlation between the support from children to the elderly and their life satisfaction. Those elderly people whose economic condition is independent show higher life satisfaction.