Abstract The purpose of this study is to present a state-of-the-art literature review on Freight Villages from the sustainability and equity perspective, and discuss their impacts and place in the supply chain and logistics networks while focusing on the core concepts of freight transportation. With an understanding of the structure of freight villages, it is clear that they have potential for a number of merits with the increase in freight transportation activities. However, our review shows that current literature does not present satisfying evidence that these villages fulfill their purpose in terms of sustainability and social equity.