Foreign Direct Investment (FDI) serves as a vital catalyst for economic growth, particularly in resource-rich developing economies such as Zambia, where the mining sector plays a pivotal role in national development. This research investigates the impact of political stability and contestation on FDI inflows within Zambia’s mining industry, addressing a critical gap in understanding how governance dynamics influence investment decisions. Utilizing a mixed-methods approach with a convergent parallel design, the research integrates quantitative and qualitative data to provide a comprehensive analysis. An Autoregressive Distributed Lag (ARDL) model is applied to assess long-term and short-term relationships between political variables and FDI trends. Historical data, policy shifts, and investor perceptions are examined to contextualize the findings. The results reveal that sustained political stability enhances investor confidence, encouraging long-term capital commitments in the mining sector. Conversely, periods of heightened political contestation during elections, leadership transitions, or major policy reforms generate uncertainty that can deter investment. The research highlights the balance required in governance frameworks, where democratic processes must coexist with measures that safeguard investor confidence. To address these challenges, the authors propose policy interventions, including stronger legal protections for foreign investors, greater transparency in regulatory practices, and risk mitigation strategies to insulate the mining sector from political volatility. These insights contribute to the broader academic and policy discourse on governance, political risk, and economic development in resource-dependent economies, offering valuable lessons for policymakers, investors, and development institutions seeking to optimize FDI attraction while balancing political competition and governance reforms.