This review paper aims to investigate the prior research on incorporating steel fibres into lightweight concrete (SF-LWC) to produce sustainable and environmentally friendly concrete. The objectives of the study are to analyse the chemical composition and physical characteristics of SF-LWC and examine its hardened properties such as compressive and flexural strengths. The research also focuses on the impact of steel fibres on the longevity of lightweight concrete and explores various properties such as the failure mode, stress-strain behaviour, ductility, and modulus of elasticity. A comprehensive literature review was conducted to evaluate the prior studies on the use of steel fibres in LWC. The findings of the previous studies were analysed and compared to determine the physical and durability properties of SF-LWC. The results of the literature review showed that steel fibres have a length range of 30–36 mm and a diameter range of 0.5–0.92 mm, with a smooth surface and high tensile strength of 1100–3000 MPa. The addition of steel fibres to LWC was found to improve compressive and flexural strengths and increase ductility. The review also highlights the impact of steel fibres on the durability and longevity of the concrete. The original contribution of this research lies in its comprehensive analysis of previous studies that have used steel fibres as a partial replacement for cement in lightweight concrete. The findings of this study provide valuable insights into the properties and performance of sustainable SF-LWC and offer suggestions for future research. By presenting a critical evaluation of prior research, this study advances the field and lays a solid foundation for further investigation. This paper offers recommendations for future studies and provides valuable insights into the properties and performance of SF-LWC, contributing to the advancement of sustainable and energy-efficient construction methods.