This systematic review examines academic literature published between 2012 and 2022 on micro-credential research and practices in higher education. A deductive analysis of empirical evidence from the 29 included articles offers insights into awareness, benefits, challenges, effectiveness, and factors influencing effectiveness of micro-credentials in the sector. The results suggest that there are potential benefits for including micro-credentials in higher education. The findings also highlight that micro-credentials are not a micro task for students to complete or for higher education providers to successfully implement. Micro-credentials in higher education, however, are still at the early stage of development, and further research is required to evaluate their viability and effectiveness in the long term. The review carries implications for micro-credential research and practices.