The nonlinear absorption of 40 nm Ag nanoparticles (Ag NPs) was investigated using open aperture (OA) Z-scan technique at 532 nm. Experiments show that the nonlinear absorption behavior of Ag NPs is intensity dependent. Specifically, under low laser energy the Ag NPs shows saturable absorption (SA). At medium laser energy, the transformation of nonlinear absorption from SA to reverse saturable absorption (RSA) happens. While under stronger laser energy, double transformation (SA→RSA→SA) of nonlinear absorption occurs. The experimental results were analyzed theoretically using a model based on single-photon absorption and two-photon absorption saturation.