Foreign Direct Investment is a very important component of the economic activity of a country. It is a vital resource for a county’s economic and social development and prosperity. Through extensive literature, we find that FDI is one of the most important channels through which international funding results in economic benefits. In this article, we present Foreign Direct Investment in Macedonia and consider FDI as the locomotive of the country, since it is concentrated on important sectors of the economy of Macedonia. The effects of foreign direct investment (FDI) are recognized in theory, literature, and also in practice. The Republic of Macedonia as a country still faces economic reforms, and considers FDI as one of the relevant factors affecting the acceleration of the economic growth process. Next in this paper, we discussed the factors which make Macedonia an attractive location for foreign investors. Also, through literature, we recognized how the concept of economic freedom and the ease or difficulty of doing business is an important key in this country.