This paper introduces Exponentiated Inverse Exponential Distribution (EIED), a novel probability model developed within the power inverse exponential distribution framework. A distinctive feature of EIED is its highly flexible hazard rate function, which can exhibit increasing, decreasing, and reverse bathtub (upside-down bathtub) shapes, making it suitable for modeling diverse lifetime phenomena in reliability engineering, survival analysis, and risk assessment. We derived comprehensive statistical properties of the distribution, including the reliability and hazard functions, moments, characteristic and quantile functions, moment generating function, mean deviations, Lorenz and Bonferroni curves, and various entropy measures. The identifiability of the model parameters was rigorously established, and maximum likelihood estimation was employed for parameter inference. Through extensive simulation studies, we demonstrate the robustness of the estimation procedure across different parameter configurations. The practical utility of EIED was validated through applications to real-world datasets, where it showed superior performance compared to existing distributions. The proposed model offers enhanced flexibility for modeling complex lifetime data with varying hazard patterns, particularly in scenarios involving early failure periods, wear-in phases, and wear-out behaviors.