According to the validation literature on items of Young’s Internet Addiction Test (IAT), this study rephrased disputable items to improve the psychometric properties of this Chinese version of IAT and identify the presence of differential item function (DIF) among demographic and Internet use factors; detect the effect of demographic and Internet use factors on IAT after adjusting for DIF. An online questionnaire was distributed to college students in Zhe Jiang province in two stage. The 1st phase study collected 384 valid responses to examine the quality of IAT items by using Rasch Model analysis and exploring factor analysis (EFA). The online questionnaire was modified according to the 1st phase study and distributed online for the 2nd phase study which collected a total of 1131 valid responses. The 2nd phase study applied confirmatory factor analysis (CFA) and a multiple indicator multiple causes (MIMIC) model to verify the construct of IAT, potential effect of covariates on IAT latent factors, as well as the effect of differential item functioning (DIF). Rasch model analysis in the 1st phase study indicated a 5-point rating scale was performed better, no sever misfit was found on item. The overall property of Chinese version IAT with the 5-point scale was good to excellent person and item separation (2.66 and 6.86). A three-factor model was identified by EFA. In the 2nd phase study, IAT 13 were detected with DIF for gender in MIMIC model. After correcting DIF effect, the significant demographic and Internet use factors on IAT were time spent online per day, year 3, year 2, general users. Item improvement was efficient that the problematic items found in literature was performed good in this study. The overall psychometric property of this Chinese version IAT was good with limited DIF effect in one item. Item improvement on IAT13 was encouraged in the future study to avoid gender bias and benefit for epidemiology on PIU.