Advancements in technology have revolutionized communication, socialization, and work paradigms. The surges in globalization, the permeation of digital culture, and the expansion of online communication tools have prompted organizations globally to adopt virtual teams. These virtual environments, while beneficial, present a myriad of challenges that necessitate the application of system dynamics to optimize performance. A systematic review was conducted to analyze previous studies focusing on the leadership of virtual teams within the context of systems thinking. Seven databases, including Sage Online, Springer, JSTOR, Taylor and Wiley Online Library, Francis Online, Google Scholar, and Semantic Scholar, were utilized. From an initial pool of 5,070 studies, 30 were meticulously screened, summarized, and synthesized based on pre-established inclusion and exclusion criteria. The review highlighted the recurrent emphasis on factors such as communication technology, trust, intra-team relationships, and leadership strategies as pivotal for enhancing virtual team performance. This synthesis aims to present a comprehensive overview of current research trajectories in the field, delineating existing research gaps, limitations, and challenges.