The effects of FDI on economic growth have been extensively examined in the literature. However, research on the impact of FDI on the broader notion of development is quite limited. In this study, I investigate the impact of FDI on human development, using the Human Development Index (HDI) as a proxy for human development. Using panel data for 92 developing countries over the period 1980-2009, I find a positive significant effect of FDI on HDI even after controlling for GDP and other relevant variables. As endogeneity is clearly an econometric issue, this study employs the Instrumental Variables approach.