This systematic review aims to synthesize and analyze existing evidence on the practices of bibliotherapy in the educational setting. A systematic literature search was conducted using four leading databases. The PRISMA guidelines were followed to ensure the articles' relevance in the review. Articles that involved bibliotherapy or reading therapy for teachers, teacher candidates, students, and children were included in the review. All included studies were peer-reviewed and published between 2006 and 2021 to ensure credibility and relevance to present practices. A total of 35 articles were included in the review based on specified inclusion and exclusion criteria. These articles were focused on the following themes: perceptions and practices of bibliotherapy; socio-emotional outcomes; academic outcomes; self-esteem, resilience, hope, and mindfulness outcomes; and stress, trauma, anxiety, and depression outcomes. Perceptions and practices of bibliotherapy showed how teachers and teacher candidates saw the value of the practice but lacked training for it. Outcomes in various domains showed that bibliotherapy might be implemented for different goals, such as improving social skills, emotional awareness and expression, empathy, academic achievement, learning ability, self-esteem, resilience, hope, and mindfulness, as well as a reduction in aggressive behaviors, stress, depression, anxiety, and trauma effects. These findings highlight the utility of bibliotherapy in education as support for the academic, socio-emotional, and psychological development of various types of students. This systematic review's findings contribute to the literature gaps regarding the lack of a unified framework for bibliotherapy.