This study aims to test the impact of foreign banks' entry on banking sector development in Egypt; data for the period (2011-2021) were collected from the World Bank database and the central bank of Egypt (CBE) to estimate the used econometric model. Banking sector development represents the dependent variable; the study used a vector consisting of three variables and a multiple regression model to test the relationship between foreign banks' entry and Banking sector development. The results show a positive impact of foreign banks' entry on the banking sector development in Egypt.