This project investigates the determinants of Foreign Direct Investment (FDI) in six Southeastern European (SEE) countries (Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia) and its subsequent impact on income inequality. The study delves into the theoretical background of FDI, exploring factors such as market size and trade openness, and their influence on FDI inflows. The research employs an explanatory research design and utilizes secondary data to analyze the relationship between FDI and various economic indicators including GDP, inflation, and unemployment, and income inequality. The findings, presented through results and discussions, explore the relationship between FDI and its determinants in the selected economies and assesses whether FDI exacerbates income inequality in the region. The project concludes with recommendations for policymakers and identifies limitations and potential future research directions.