The use of puppets as a pedagogical tool in early childhood education and care (ECEC) has a long tradition but has seen limited use in recent years in both ECEC institutions and teacher education. Puppets have potential as a functional tool for integrating academic, playful intentions in ECEC. Although there have been some reviews about the use of puppets for young children, there has been no comprehensive review of their use for education. Thus, this paper describes a systematic review of 105 peer-reviewed research articles that revealed five areas of pedagogical use of puppets for children: communication, science, health care, creativity and behaviour. Their use in different areas and the number of articles indicate the many potential uses of puppets as a pedagogical tool in ECEC. Nevertheless, it is also important to be aware of the tool’s shortcomings, as not all children and professionals respond positively to or are motivated by puppets.