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We study the abnormal ferromagnetism in α-K2AgF4, which is very similar to high-TC parent material La2CuO4 in structure. We find out that the electron correlation is very important in determining the insulating property of α-K2AgF4. The Ag(II) 4d9 in the octahedron crystal field has the t 2 g 6 e g 3 electron occupation with eg x2-y2 orbital fully occupied and 3z2-r2 orbital partially occupied. The two eg orbitals are very extended indicating both of them are active in superexchange. Using the Hubbard model combined with Nth-order muffin-tin orbital (NMTO) downfolding technique, it is concluded that the exchange interaction between eg 3z2-r2 and x2-y2 from the first nearest neighbor Ag ions leads to the anomalous ferromagnetism in α-K2AgF4.