The purpose of this study was to determine the effect of overconfidence, Islamic financial literacy on investment decisions in MSMEs in Semarang City. This research is a quantitative research using primary data. The method of data collection was carried out through a questionnaire distributed to UMKM in the city of Semarang. The sample used in this study was 100 respondents with a purposive sampling technique. The data obtained was processed with SPSS. This analysis uses instrument test, multiple linear regression test, t test, f test, R2 test, and classical assumption test. Based on the results of the T test, overconfidence and financial literacy have a positive effect on investment decisions. The results of the F test show that overconfidence and financial literacy simultaneously have a significant positive effect on investment decisions.