Background: Hippotherapy is an equine-assisted therapeutic method for the development of physical, occupational, and emotional performance in people suffering from various maladies. The neurophysiology of hippotherapy is characterized by the cyclical rhythmic movement of the horses, which is a kind of sensory input providing the rider with the information needed to maintain the proprioceptive and vestibular systems. It is the act of falling and jumping process that encourages neural pathways responsible for the development of the motor system which gradually results in the development of balance and coordination. To wit, the motion of those animals is one such that they imitate the normal human body’s walking pattern and in effect, like physiotherapy, they provide familiarity and thereby help in reskilling the rider’s core muscles and postural alignment. Furthermore, the relationship between the horse and the human being can also contribute to the emotional and spiritual side of the human being, thus, resulting in a more holistic approach to therapy that could be shown in practice through such modes as horse therapy. Methodology: We performed literature searching multiple electronic databases. The searches generated 50 potentially relevant studies. After applying inclusion and exclusion criteria, eliminating repeated articles, and critically evaluating the obtained results, nine papers were selected for the analysis. The selected papers were published between the period of January 2019 to July 2024. This comprised two cross-sectional studies, one experimental study, one exploratory study, one randomized controlled trial, and one survey investigation. Results: This literature review noticed a connection between hippotherapy and observable improvements in balance, coordination, gait, motor functions, cognitive functions, flexibility, functional mobility in children with disabilities. Conclusion: Hippotherapy has benefited balance, coordination, gait, motor functions, cognitive functions, flexibility, and functional mobility in children with disabilities, and thus, it should be considered as a treatment strategy for treating children with disabilities.