The global demand for sustainable palm oil has increased pressure on smallholder producers to comply with environmental, social, and governance standards. Despite their significant contribution to total palm oil output, independent smallholders often face systemic barriers related to land tenure, limited access to finance, low technology adoption, and weak institutional support. This study investigates the mechanisms that contribute to the empowerment of oil palm smallholders in achieving sustainability outcomes. Employing a qualitative approach through a Systematic Literature Review (SLR), the study synthesises evidence from 27 peer-reviewed articles published between 2021 and 2025, selected based on PRISMA guidelines from the ScienceDirect database. Data collection was conducted by filtering literature using targeted keywords and eligibility criteria, including time range, thematic focus, and open access availability. Thematic synthesis was applied for data analysis, categorising findings into four key empowerment dimensions: institutional, financial, technological, and organisational mechanisms. The review reveals that integrated strategies involving certification facilitation, accessible financing, digital and agronomic innovations, and cooperative strengthening significantly enhance smallholder capacity to engage in sustainable palm oil production. Institutional fragmentation and unequal access, however, continue to constrain widespread impact. Empowerment requires coordinated interventions that address both structural barriers and local capacities. Future research should explore context-specific models that combine inclusive policy design with long-term capacity building tailored to smallholder realities.