This chapter surveys the empirical literature on foreign direct investment (FDI) in Kosovo and then examines the inflows, origins, sectoral composition, and geographic distribution of FDI. Kosovo’s relative location, demographics, and investment laws provide positive conditions for attracting FDI. Many industries are available for investors under Kosovo's privatization program, and several economic zones (EZs) have been established to further attract the attention of MNEs. FDI in sectors such as energy, agriculture, tourism, and telecommunications have particularly favorable implications for Kosovo's development prospects through job creation and technology transfer. Nevertheless, inflows of capital have been disappointing thus far due to poor infrastructure, corruption, and unreliable institutions. The political situation remains unclear and variability remains in the enforcement of contracts and the protection of property. Prospects for FDI remain uncertain due to domestic and international political challenges and the economic consequences of the COVID-19 pandemic, which has hit many of Kosovo's leading FDI origin countries particularly hard.