Economic transition towards a market driven economy in the Lao People's Democratic Republic (Lao PDR or Laos) began in 1986 and has attracted international attention including the attention of Australia. This study investigates the trends, patterns and determinants of Australian direct investment in Laos. Australia has played a significant role in the development of the Lao economy through bilateral trade, direct investment and foreign aid. The study outlines the contribution of foreign direct investment (FDI) flows to Laos's socio-economic development. A key part of this study is a case study of an Australian mining company with significant investments in Laos. The study investigates the factors that have influenced the Australian corporate investor to undertake investment in Laos. The study aims to provide a greater understanding of the factors that influence FDI and the factors that may determine the future trends in such investment. The study also assesses the effects of FDI laws and regulations on FDI flows to Laos. The study sheds new light on the trends, patterns and determinants of Australian direct investment in Laos.