AbstractDespite significant initiatives to improve education globally, policy makers and researchers are concerned about literacy outcomes in developing countries, as students lack basic literacy skills even after many years in schooling. Educational technology has been championed as a potential solution to low‐quality education in developing countries, yet little rigorous research on this topic exists. Since Covid‐19 has caused enormous global disruption and teachers have been forced to adopt technology globally, research into the effectiveness of using technology for teaching literacy in low‐income contexts is vital. This systematic review of the literature analyses and synthesises the range of international research available on educational technology to improve reading in developing countries. This review includes primary qualitative, quantitative and mixed methods studies, which were analysed using thematic synthesis. The review concludes that there is some suggestive evidence that reasons for the success of educational technology literacy interventions may include ongoing teacher professional development, interactive multimedia features, and a focus on phonics and progressive reading skills. The current limited research base supports technology designs that are adaptive, engaging, and child‐centred, utilising software that can differentiate for students' levels. Engaging the community using context‐specific resources and incorporating the technology into a broader literacy programme and pedagogy, were also features highlighted in multiple studies. However, with a limited number of studies the strength of the evidence is weak; therefore, definitive conclusions cannot be made. The findings provide some suggestive evidence that could guide future research. Context and implicationsRationale for this studyThis systematic review addresses the gap in current research into which types of educational technology are effective for the teaching of reading in developing countries. By synthesising the findings of qualitative, quantitative and mixed methods primary studies, this review presents tentative recommendations for policy makers and future research.Why the new findings matterThe findings present specific features of effective educational technologies that could be used by policy makers to improve literacy outcomes. This is directly relevant for the millions of students in developing countries who lack literacy skills even after many years in school. Educational technology is widely used and promoted as a solution for improving educational or literacy outcomes in developing countries, yet little rigorous research exists. This systematic review addresses this by synthesising existing research and highlighting areas for future research. Since Covid‐19 caused teachers to adopt technology globally, research into the effectiveness of using technology for teaching literacy in low‐income contexts is vital.Implications for research and practiceThis systematic review synthesises current research so that policy makers have guidelines when designing interventions. The review provides a comprehensive map of existing literature and gaps for researchers. Based on the findings from this systematic review, policy makers are encouraged to consider how technology engages students through multimedia and interactive features, is adapted to the local context and language, and is differentiated to students' different ability levels. Policy makers should also consider how technology supports student learning through the scaffolding of specific reading skills with a holistic connection to a broader literacy programme, teacher training and the local curriculum. Since little quality data exists in this area, these recommendations for policy are tentative, and it is recommended future research further explore some of the promising features that were found in numerous successful interventions.