In this paper, a new algorithm for solving multi-modal function optimization problems-two-level subspace evolutionary algorithm is proposed. In the first level, the improved GT algorithm is used to do global recombination search so that the whole population can be separated into several niches according to the position of solutions; then, in the second level, the niche evolutionary strategy is used for local search in the subspaces gotten in the first level till solutions of the problem are found. The new algorithm has been tested on some hard problems and some good results are obtained.