This study empirically investigated the relationship between interest rates and Foreign Direct Investment (FDI) in Zimbabwe using monthly data from 2012 to 2024 obtained from the World Bank. The study employed Autoregressive Distributed Lag (ARDL) model, where Foreign Direct Investment (FDI) net inflows (% of GDP) was treated as the independent variable, while the real interest rate (%) was the dependent variable. The ARDL results revealed that current FDI had a significant negative effect on interest rates (β = -55.4364, p < 0.01), implying that increased FDI inflows reduce interest rates in the short run. However, lagged FDI values at one and two months exerted significant positive effects on interest rates, suggesting delayed monetary adjustments following capital inflows. Lagged interest rates were also positive and statistically significant, confirming persistence in interest rate movements over time. The adjusted R-squared of 0.5177 indicates that approximately 51.8% of variations in interest rates were explained by the model. The study recommends strengthening macroeconomic stability and adopting investment-friendly monetary policies to attract sustainable FDI inflows while maintaining interest rate stability in Zimbabwe.