This study examines the impact of investor psychology and sentiment on financial market behavior and workplace financial decision-making. Traditional finance assumes that investors act rationally; however, behavioral finance suggests that decisions are often influenced by emotions and cognitive biases such as fear, greed, overconfidence, herd behavior, and loss aversion. The research adopts a descriptive design and is based on primary data collected through a structured questionnaire from 100 respondents, including individual investors and working professionals. Simple statistical tools such as percentage analysis, charts, and the Chi-square test are used to analyze the data and test the relationship between psychological factors and financial behavior. The findings reveal that investor sentiment significantly influences investment decisions, trading activity, risk-taking behavior, and market trends. The Chi-square test confirms a strong relationship between market mood and financial market behavior, indicating that psychological factors play a crucial role in shaping financial outcomes. The study also highlights that workplace financial decisions are affected by similar emotional and cognitive influences. Overall, the research concludes that behavioral finance is essential for understanding real-world financial decision-making. Increasing awareness of psychological biases can help investors and professionals make more rational decisions, reduce errors, and improve financial performance’.