Drawing on the behavioral theory of the firm and attribution theory, this study examines how performance feedback influences MNEs’ decisions to divest foreign affiliates. Based on foreign divestment deals of U.S. MNEs (2017-2022), we found that MNEs’ decisions on foreign divestment strongly depend on the type of aspiration level, which serves as a benchmark in organizational performance assessment. Considering the inherent differences between historical and social aspiration levels, we further examine how performance feedback based on the two referents interacts to jointly determine foreign divestment decisions of MNEs. Overall findings suggest that historical and social performance feedback exerts contrasting influences on foreign divestment in isolation. At the same time, they also complement each other in guiding MNEs’ foreign divestment strategies into specific directions.