Financial literacy stands as the main factor determining personal financial health for millennials who face difficulties in understanding contemporary financial markets and rising costs of living and new investment options. The research investigates how financial literacy rates among millennials affect their market investment choices. People who belong to the millennial generation between 1981 and 1996 make up a major part of the workforce and today show increased interest in various financial products including mutual funds and equities and systematic investment plans and crypto currencies and retirement plans. People make financial choices based on different levels of financial understanding and risk preferences and consistent income and their ability to use digital technology. The primary objective of this research is to analyze the relationship between financial literacy and investment behavior among millennials. The study explores key components of financial literacy, including knowledge of savings, interest rates, inflation, risk diversification, and financial planning. The study examines investment behavior through researchers who identify preferred investment methods and their investment patterns and their level of risk tolerance and their financial objectives. A structured questionnaire-based survey method is adopted to collect primary data from millennial respondents. The researchers used percentage analysis together with comparative evaluation methods to discover data patterns and relationships between different variables. The research results show that people with higher financial literacy skills make better investment decisions because they understand how to build diversified portfolios and create plans for building their wealth over the long term. The research shows that millennials with advanced financial skills make more investments in market-based assets because they understand these assets better.