To evaluate the effect of artificial disc implantation and fusion on the biomechanics of adjacent motion segment, a nonlinear three-dimensional finite element model of whole lumbar spine (L1-S1) was developed. Biomechanical analysis was performed for two different types of artificial disc, ProDisc and SB $Charit{acute{e}}$ III model, inserted at L4-L5 level and these results were also compared with fusion case. Angular motion of vertebral body, forces on the spinal ligaments and facet joint under sagittal plane loading with a compressive preload of 150 N at a nonlinear three-dimensional finite element model of Ll-S1 were compared. The implant did not significantly alter the kinematics of the motion segment adjacent to the instrumented level. However, $Charit{acute{e}}$ III model tend to decrease its motion on the adjacent levels, especially in extension motion. Contrast to motion and ligament force changes, facet contact forces were increased in the adjacent levels as well as implanted level for constrained instantaneous center of rotation model, i.e. ProDisc model.