Gamification has rapidly transformed from a marginal pedagogical experiment into one of the most influential tools shaping contemporary education. Between 2023 and 2025, a significant body of empirical research, systematic reviews, and meta-analyses emerged, offering stronger insight into its benefits, limitations, and the conditions under which it succeeds. This article presents a comprehensive academic exploration of gamification in education, synthesizing findings from recent studies and analyzing both psychological mechanisms and design principles. It evaluates how game elements—such as points, badges, leaderboards, progress bars, quests, and immediate feedback—affect motivation, engagement, and academic performance. The paper also highlights risks including extrinsic-motivation dependence, inequality, shallow learning, and student anxiety. Practical recommendations and policy implications are provided to guide educators, researchers, and digital platforms in implementing gamification ethically, inclusively, and effectively.