This systematic review examined available findings on spatial and temporal characteristics of cortical activity in response to unpredicted mechanical perturbations. Secondly, this review investigated associations between cortical activity and behavioral/biomechanical measures. Databases were searched from 1980-2021 and a total of 35 cross-sectional studies (31 EEG and 4 fNIRS) were included. Majority of EEG studies assessed perturbation-evoked potentials (PEPs), whereas other studies assessed changes in cortical frequencies. Further, fNIRS studies assessed hemodynamic changes. The PEP-N1, commonly identified at sensorimotor areas, was most examined and was influenced by context prediction, perturbation magnitude, motor adaptation and age. Other PEPs were identified at frontal, parietal and sensorimotor areas and were influenced by task position. Further, changes in cortical frequencies were observed at prefrontal, sensorimotor and parietal areas and were influenced by task difficulty. Lastly, hemodynamic changes were observed at prefrontal and frontal areas and were influenced by task prediction. Limited studies reported associations between cortical and behavioral outcomes. This review provided evidence regarding the involvement of cerebral cortex for sensory processing of unpredicted perturbations, error-detection of expected versus actual postural state, and planning and execution of compensatory stepping responses. There is still limited evidence examining cortical activity during reactive balance tasks in populations with high fall-risk.