This paper explores the legal protection for foreign direct investments (FDIs) in international and domestic contexts, focusing on a developing country, Mongolia. The study investigates Mongolia's efforts to address its FDI requirements through international investment law, utilizing bilateral and multilateral investment treaties. Its main goal is to ascertain what protections foreign investors have in the face of risks, analyze the effectiveness of international law in safeguarding them, and assess whether these protective measures benefit or hinder the involved parties. It delves into how the proper application of international investment law can stimulate economic growth, technology transfer, job creation, and overall economic development for both parties, by highlighting the difficulties, prospects, and results of using international investment law to address investment disputes in developing nations.