Aim/Purpose: The purpose of this research is to evaluate the available literature on Collaborative Virtual Environments (CVEs). It aims to investigate the impacts, guiding principles, and problems of CVEs, giving light to their revolutionary potential in a variety of sectors, such as education, healthcare, and gaming. Background: CVEs have received a lot of interest in recent years because of their potential to change how people interact and cooperate in virtual settings. It has the potential to increase collaboration, learning experiences, and productivity across numerous areas. Methodology: This study comprehensively analyzes existing literature on CVEs, highlighting their ability to significantly change several fields, such as education, healthcare, and gaming. The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) standards were followed to ensure a clear and methodical approach to the literature review. The search technique targeted the SCOPUS database for articles published from 2009 to 2022, utilizing specific keywords about CVEs. This was followed by a thorough two-stage screening procedure based on specified inclusion and exclusion criteria, ensuring only relevant research was evaluated. Contribution: This literature review contributes by providing a thorough review of the current state of the art in the field of CVEs. It synthesizes previous research and offers insights into the consequences, guiding principles, and problems of CVEs in different domains. Findings: The research results demonstrate the wide range of uses for CVEs and their ability to promote enhanced cooperation, learning, and productivity. Current obstacles have been identified, and a set of guiding principles for implementing CVEs has been provided. A clear and reproducible foundation for future research in this area was found through a detailed explanation of the search approach and criteria used to select studies. The literature review concludes with practical suggestions for practitioners in many fields, emphasizing the need to consider CVEs to improve cooperation and productivity. Recommendations for Practitioners: To improve cooperation and productivity, CVEs should be considered by practitioners in education, healthcare, gaming, and industry. Best practices and recommendations for the successful usage of CVEs in various areas must be established. End-user training and assistance are critical for maximizing the benefits of CVE technology. Recommendation for Researchers: Additional study is required to investigate the long-term consequences and durability of CVE solutions, the creation of new technologies and methods to overcome the stated CVE adoption problems, and multidisciplinary collaboration to harness CVEs in innovative ways. Impact on Society: The review emphasizes CVEs’ potential social benefit in fostering cooperation, improving learning experiences, and increasing productivity. The widespread use of CVE technology may result in more efficient and productive ways of communicating and working in virtual worlds. Future Research: Future studies in this field should concentrate beyond the study’s period (2022), investigating the changing environment of CVEs, examining the effects of developing technologies and trends on CVEs, and evaluating CVE technology’s scalability and accessibility for greater societal usage.