The aim of this thesis is to investigate the relationship between Foreign Direct Investment (FDI) and economic growth in Georgia over the time period of 1997-2015. With the use of previous research and empirical theories, I expect a positive influence of FDI on economic growth in Georgia both in long-run and short-run. Further, this study considers additional determinant factors based on the previous studies and theories. Concerning the method used in this thesis, I apply Dickey-Fuller test in order to test unit roots for time series and Engle-Granger cointegration test to investigate their equilibrium relationship between the series. Further, I run a regression between the series to obtain the long-run relationship and Error Correction Model (ECM) to obtain the short-run relationship. The result confirms that FDI have a significant and positive effect on economic growth both in long-run and short-run. The result also illustrates that FDI along with other explanatory variables such as inflation have a long-run relationship with economic growth. Further, it is shown that in long run, population have a negative influence and Gross Capital Formation (GCF) have a positive influence on economic growth, however, the coefficients are not quite significant. In short-run, change in FDI, change in GCF, and change in population have a significant explanatory power in change in economic growth. Thus, the study shows that FDI inflow in Georgia has a positive effect on economic growth.