This systematic review delves into the intricate relationship between preschool pupils and their learning environment, exploring the profound impact on formative behavior and the overall learning experience during the critical years of childhood development. A meticulous analysis of 20 peer-reviewed articles published between 2014 and 2023 elucidates that a well-designed preschool learning environment significantly influences children's emotional, physical, social, and cognitive development. The study identifies crucial elements essential for creating a quality preschool learning environment, with a specific focus on design principles and interior design elements. Key findings underscore the significance of furniture arrangement, use of color, and the treatment of walls, floors, and ceilings as predominant elements crucial for fostering an optimal learning atmosphere. Despite their acknowledged importance, the review exposes a notable lack of integration of these elements in existing preschools, shedding light on the imperative need for more deliberate space planning in early education settings. This research offers valuable insights to stakeholders, emphasizing the necessity of thoughtful design considerations to support holistic development in preschoolers. Furthermore, it proposes avenues for future studies to investigate the reasons behind the insufficient incorporation of these elements in current preschool environments, thus contributing to the ongoing discourse on enhancing early childhood education.