The rapid evolution of the Metaverse presents new opportunities for businesses to enhance customer engagement through immersive digital experiences. This study systematically reviews existing literature on customer engagement in the Metaverse. Research articles published in the last five years were retrieved from Google Scholar and EBSCO to explore the current state of research, tools, methodologies, and key variables used in this domain. The review identifies various research designs employed in previous studies, including qualitative case studies, quantitative surveys, experimental studies, and mixed-method approaches. The study analysis previous studies done on customer engagement in the Metaverse across three sectors: retail, fashion, and tourism. Immersive experiences, Interactivity and Personalised marketing are identified as the key independent variables which positively correlate with and predict the customer engagement within the Metaverse. This study contributes theoretically to the literature on the Metaverse-enabled customer engagement. From the managerial contribution point of view, this research can help the businesses—especially the fashion, retail, tourism—in leveraging the Metaverse to enhance customer engagement and foster the resulted brand loyalty.