This article explores the impact of foreign investments on economic transformation, with a focus on Uzbekistan’s experience. It analyzes the theoretical foundations and mechanisms through which foreign direct investments contribute to economic modernization, technological advancement, and competitiveness. A comparative analysis of China, India, and South Korea reveals the main factors behind successful investment attraction. The study concludes that Uzbekistan needs to continue its economic reforms, improve the investment climate, and strengthen human capital to effectively utilize foreign investment.