Saina who has been performing brilliantly in spite of having recovered from chicken pox just weeks before the tournament, was defeated in straight sets 21-16, 21-19 against her higher ranked opponent.
Saina had defeated her Chinese opponent recently in Jakarta and had gone on to win her maiden super series title.
In the quarter final, Saina stood her ground in most part of the game but lost to the her opponent's smashes and quick net play.
"She (Lin) was better prepared today. She was defending well. I made a few silly mistakes but I am happy with my performance. She played better at net and involved in more tabs and pushes which shows she was prepared," Saina was quoted as saying in a news agency report.
The ace shuttler who is coached by former world champ, P Gopichand owns the 6th position in the World Ranking.