Abstarct: The present study was conducted with the aim of modeling the relationship between financial literacy and cognitive biases of individual investors. The method of this research was descxriptive-analytical and structural equation modeling. The statistical population of this research was all the active investors of the stock exchange in Shahrood city in the year 1401-1402, out of which 385 people were selected as the sample group using available sampling method, and they were asked financial literacy questionnaires. Valisardi (2011) and cognitive bias and Vauro et al. (2014) answered. The data were analyzed using SPSS and AMOS software version 26 and structural relationship test method. Examining the direct path coefficients between different paths showed that financial literacy was significantly related to cognitive bias (P=0.001, Beta=0.79). The findings emphasize the influential role of financial literacy on the cognitive biases of individual investors and its potential implications for investment decision making. By elucidating this relationship, this study provides valuable insights that can inform efforts to increase financial literacy and improve investment outcomes for individual investors.