Financial literacy has emerged as a critical determinant of individual financial well-being and investment decision-making in today’s dynamic financial environment. A sound understanding of financial concepts enables individuals to evaluate investment opportunities, manage financial risks, and make informed decisions that contribute to long-term wealth creation. Despite the increasing availability of diverse investment avenues, many individuals continue to exhibit inadequate financial knowledge, resulting in suboptimal investment choices. Against this backdrop, the present study examines the relationship between financial literacy and investment behaviour among individual investors in Varanasi District. The study adopts a descriptive and analytical research design based on primary data (n=300) collected through a structured questionnaire from individual investors in Varanasi District. The collected data are analyzed using descriptive statistics, reliability analysis, correlation, and simple linear regression to assess the influence of financial literacy on investment behaviour. The study evaluates respondents’ level of financial knowledge, awareness of investment products, and their investment preferences and decision-making patterns. The findings are expected to demonstrate that financially literate individuals are more likely to make rational investment decisions, diversify their investment portfolios, and prefer investment avenues that align with their financial goals and risk tolerance. The study contributes to the existing literature by providing empirical evidence from Varanasi District and offers practical implications for policymakers, financial institutions, educators, and investor awareness agencies in designing effective financial education initiatives. Enhancing financial literacy can play a significant role in promoting informed investment behaviour, improving financial inclusion, and strengthening the overall financial well-being of individuals.