Implementing cloud Enterprise Resource Planning (ERP) systems grants small and medium-sized enterprises (SMEs) convenience in accessing vital IT resources. This allows SMEs to access scalable IT resources while leaving complex software and hardware administration challenges to specialist vendors. However, the implementation of cloud ERP systems is often challenged by the risks associated with inadequate network stability, service outages, and data processing and transfer issues. This study aims to identify the critical success factors (CSFs) and challenges for the implementation of cloud ERP systems by manufacturing SMEs in Klang Valley. Traditional literature review (TLR) methodology was used to systematically search for, organize, analyze, and synthesize data from existing literature which discusses CSFs and challenges that influence the implementation of cloud ERP. The TLR had identified nine CSFs including “Top Management”, “User Training”, and “Vendor Support”. Meanwhile, six challenges were identified including “Cost”, “Performance”, and “Data Security”. The analysis also presented that though the discussion on challenges of cloud ERP implementation is near maturity, it is not for CSFs. Furthermore, a conceptual model was constructed on how CSFs and challenges influence the success of cloud ERP implementation. The authors hope that findings from this study can guide both researchers and professionals regarding the CSFs and challenges that can influence cloud ERP implementation.