Dynamics of reverse saturable absorption (RSA) and optical limiting (OL) in C60 medium are studied in detail employing rate equation theory. Experimental results of RSA and OL in C60toluene solution with a Q-switched frequency-double YAG laser agree well with the theoretical simulations. The contribution of each energy level of C60 molecule to RSA and the influence of different laser wavelength and pulse duration on RSA and OL are also dicussed.