In the present financial environment, individuals are exposed to a wide range of investment opportunities, making financial literacy an essential skill. This study aims to analyse the impact of financial literacy on the investment decisions of young investors. The research is based on primary data collected from 100 respondents through a structured questionnaire. Descriptive research design has been used, and tools such as percentage analysis and Chi-square test have been applied for interpretation. The findings indicate that financial literacy significantly influences investment behavior, risk perception, and decision-making ability. The study also reveals that young investors with higher financial knowledge prefer modern investment avenues like stocks and mutual funds. Overall, the research highlights the importance of financial education in improving investment outcomes and financial stability.