Multimedia has been a strategy in teaching processes, especially within the learning management system (LMS). However, multimedia tools have not delivered satisfaction towards the learning process. In addition, the lack of engagement within the LMS has been a real problem for e-learning. Therefore, this study aims to identify what the challenges are in implementing multimedia and how multimedia could enhance user engagement. This study hopes to give both academics and practitioners insights into a successful multimedia implementation within the LMS platform. This study is conducted through a systematic literature review (SLR) based on the PRISMA methodology, which contains four filtering phases: identification, screening, eligibility, and inclusion. The study managed to obtain 25 relevant papers on multimedia and user engagement after several filtering processes. It was found that interactive multimedia was the most implemented multimedia type. Furthermore, the pedagogical strategy was claimed the most important challenge that needs to be considered in multimedia implementation. Moreover, the results show that perceived interaction within multimedia could significantly enhance user engagement in LMS.