Digital media has become an integral part of our daily lives, connecting people from all around the world in a matter of seconds. In recent years, social media has revolutionized the flow of information and helped people to connect, share, and discuss things at their fingertips. However, this rapid exchange of information has also given rise to a concerning phenomenon – the spread of misinformation. "Misinformation" has led to a wide range of negative consequences, such as political polarization, social unrest, and erosion of trust in traditional media. This review explores the importance of social media literacy, its advantages, impacts, and effects, along with allusions to misinformation. The methodology includes a systematic search of literature in the databases from Internationally double-blinded peer-reviewed journals between 2016 and 2022, in English that also includes scientific articles. A total of 64 articles were obtained. A selection process of articles took place, applying certain inclusion and exclusion criteria, resulting in a total of 10 articles being selected. The findings signify that the conception of social media literacy has just started and more research is needed to identify its practical and theoretical implications. This is linked to the content and competencies, critical thinking, content, and context of the information, and the time and literacy level and fear of missing out on the user. Socio-emotional competencies, literacy level, and time spent stand out since social media is a frequent place of interaction between people. Thus, it is crucial to develop social media literacy skills to combat the dissemination of fake news and ensure a more responsible citizen and informed society.