Accurate theoretical energy level, lifetime, and transition probability calculations of core-excited Fe XVI were performed employing the relativistic Multireference Moller-Plesset perturbation theory. In these computations the term energies of the highly excited n<=5 states arising from the configuration 1s^2^2s^k^2p^m^3l^p^nl'^q^, where k+m+p+q=9, l<=3 and p+q<=2 are considered, including those of the autoionizing levels with a hole-state in the L-shell. All even and odd parity states of sodium-like iron ion were included for a total of 1784 levels. Comparison of the calculated L-shell transition wavelengths with those from laboratory measurements shows excellent agreement. Therefore, our calculation may be used to predict the wavelengths of as of yet unobserved Fe XVI, such as the second strongest 2p-3d Fe XVI line, which has not been directly observed in the laboratory and which blends with one of the prominent Fe XVII lines.