This paper focused on a systematic literature review of the current state of remote sensing utilization in assessing fire’s impact on ecosystem services. Specific search strategies were used to search for the literature in Elsevier’s Scopus and PubMed databases. The inclusion and exclusion of studies were guided by the Preferred Reporting Items for Systematic Reviews and Meta-analysis (PRISMA) protocol resulting in 23 papers being analyzed. The analysis of the retrieved research papers revealed a gradual increase in the publication of papers on the utilization of remote sensing in assessing the impact of fire on ecosystem services with most studies occurring in Asia. Landsat satellite data was mostly used to analyze the effects of vegetation fires on ecosystem services while MODIS was mostly used to detect the fire occurrence in the landscape. The least utilized satellite data included PlanetScope, AVIRIS, and ASTER. The review revealed that vegetation fires affect forest, grassland, wetland, and soil ecosystems. Additionally, fires disturb the atmosphere through carbon and particulate matter emissions. The forest ecosystems were the most widely studied ecosystem. The study underscores the significance of remote sensing methods in assessing the impact of fires on ecosystem services. The limitations and research gaps within the field were also identified.