The last decade has witnessed a rapidly growing literature exploring neighborhood effects on health and behavior. Although evidence of a spillover effect of a neighborhood is abundant, most neighborhood studies assume between-neighborhood independence thus ignoring the spatial-dependency between nearby neighborhoods in their multi-level analysis. To address this gap, the present study aims to develop a multilevel spatial logistic model and explore the neighborhood main effect and spatial spillover effects on physical activity (PA) in a multilevel framework. We use individual PA and demographic data from the Metropolitan Chicago Information Center-Metro Survey (MCIC-MS), and Neighborhood-level data are from a variety of sources including the 1994-1995 Project on Human Development in Chicago Neighborhoods-Community Survey (PHDCN-CS), the MCIC Community Vitality Index (CVI).