The study investigates determinants and impacts of FDI in major South Asian economies, namely Bangladesh, India, Pakistan, Sri Lanka, and Nepal considering that these economies share almost one-fifth of the world population and have been a favorable destination for FDI in recent times. Moreover, there is a dearth of literature that has investigated and compared FDI policy, determinants and impacts in major South Asian economies collectively using latest data and econometric devices. Therefore, in this study, these issues are addressed systematically to add knowledge.