Foreign direct investment (FDI) is played a vital role for boosting up the economies of developing countries. Hence, it is necessary to know the factors that determines the flows of FDI in the developing countries. This study has attempted to investigate how different factors affect the inflow of foreign direct investment in South Asian Countries. To attain the objective this study has collected data on the respective variables for 45 years and considered seven countries. The relationship between different economic variables and their overall impact on FDI inflows have been examined through various panel models like basic pooled OLS estimation, entity fixed effect model, time fixed effect estimation and random effect model. The outcome of this study is that GDP of the country is the main factor behind the FDI inflows in South Asian countries.