The relationship between exchange rate volatility and foreign direct investment (FDI) inflows in emerging economies has remained a central issue in international finance, particularly in economies exposed to macroeconomic instability and external shocks. In this study, the impact of real exchange rate volatility (VOLREXR) on FDI inflows in Egypt was examined using quarterly data spanning the period from 2001 to 2024. Exchange rate volatility was first estimated through the Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) model in order to capture asymmetric responses to exchange rate shocks and to generate a more accurate measure of exchange rate uncertainty. Subsequently, the dynamic relationship between exchange rate volatility and FDI was investigated within the Autoregressive Distributed Lag (ARDL) framework, which enabled the estimation of both short-run adjustments and long-run equilibrium effects in the presence of mixed orders of integration. The empirical analysis was supported by unit root testing, bounds cointegration testing, and an error correction specification, while model adequacy and robustness were verified through a comprehensive set of diagnostic and stability tests, including serial correlation, heteroskedasticity, normality, multicollinearity, and structural stability assessments. The results indicate that VOLREXR exerts a statistically significant and negative effect on aggregate FDI inflows in Egypt in both the short run and the long run, suggesting that heightened exchange rate uncertainty weakens investor confidence and discourages capital commitment. Among the control variables, market size, represented by gross domestic product (GDP), was found to exert a positive and statistically significant influence on foreign investment, confirming the importance of domestic economic expansion in attracting international capital. By contrast, inflation and external debt were found to impose adverse effects on investment performance, reflecting the destabilizing consequences of macroeconomic imbalances. Market capitalization, however, was shown to contribute positively to FDI inflows, highlighting the role of financial market development in strengthening investment attractiveness. Overall, the findings underscore the importance of exchange rate stability and coherent macro-financial policy coordination in fostering a predictable investment climate and supporting sustainable long-term capital inflows into the Egyptian economy.