Abstarct: The main purpose of this paper is to study the effect of interest rate on investment in the Iranian food and beverage industry from 2004-2011 by using panel data method. The statistical population of this survey is Iranian industries and the size of sample is 22 industries. Changes in interest rates can reflect the basic situation of the operation of macro economy; it also affects all the macroeconomic variables such as GDP, price level, the level of employment, international balance of payments, the rate of economic growth, etc. Obviously the interest rate is an important economic variable that plays an important role in both macro and micro economic activities. The result of estimation indicates a positive effect from export and profitability on investment in the Iranian food and beverage industry. In this model the coefficient of export and profitability equal 0.810 and 0.018 which shows that a unit of increase in export and profitability, lead to 0.810 and 0.018 percent increase in investment. Finally, we find that the coefficient of interest rate equal 0.024 which shows that a unit of increase in banking’ loan interest rate, lead to 0.024 percent increase in investment.