Caffeine is the most commonly administered drug in neonatal critical care units. It is used for the prevention and treatment of apnea, despite being linked to a decreased risk of bronchopulmonary dysplasia (BPD) in infants aged 18 to 21 months. We conducted a comprehensive search of EMBASE, the Cochrane Database of Systematic Reviews (CDSR), and PubMed from inception to January 2022 using variations of the key phrases "apnea," "caffeine," "intensive care, neonatal," and "baby, newborn" to discover relevant literature. However, its influence on BPD and neurodevelopmental outcomes may be mediated by its anti-inflammatory mediator, white matter protection, and induction of surfactant protein B effects. Despite the fact that long-term studies have demonstrated the safety of caffeine as it is currently administered, it is evident that additional research is required to determine the optimal dosage, as well as the timing of initiation and cessation.