Entrepreneurship is one of the drivers of economic growth, and the rapid development of information and communication technology enables the emergence of digital entrepreneurship (DE). As an essential element in the entrepreneurship ecosystem, universities should encourage students to start their businesses and provide supportive environments. This study aims to find the key success factors of the University-Based Entrepreneurship Ecosystem to foster Students’ Startups through a systematic literature review. It covers 39 articles from 277 search results from a reputable database and journal publishers. The findings are that the existing literature focuses on expanding the university’s roles beyond education and research, the complexity of the ecosystem, the importance of policy and funding, and the development of frameworks to support it. Tailoring these frameworks to accommodate universities’ diversity and financial capacities is essential to promote interdisciplinary student startup teams. Incubators, accelerators, and interactive learning methods play pivotal roles in this process. The increasing volume of literature on this subject in recent years highlights its emerging significance. Still, there is a notable gap in research concerning fostering digital startups within the university entrepreneurship ecosystem. Future research should address this gap to promote a supportive environment for students’ digital startup development.