This study presents a systematic literature review on the contributions of literature circles based on a number of published researches in several refereed international journals available in various online databases. It aims to identify the contributions on the use of the method to the teaching of Literature among students of various grade/year levels. The data which was plotted on the repertory grid were analyzed to identify the gaps in the researches conducted. The findings of this study suggest that participation in literature circles contribute to the cognitive and affective development and to cultural awareness of language learners. It concludes by noting that literature circles present a strong and promising case for adoption as an approach to the teaching of Literature as they can facilitate the use of literary texts in language classrooms to optimize learners’ cognitive and affective development, likewise strengthen their cultural awareness.