The application of Lean practices in higher educational institutes has gained tremendous attention in recent years as the sector strives to improve operational efficiency, enhance student outcomes, and efficiently manage resources. A comprehensive literature review is presented in this paper on the application of Lean methodologies in higher educational institutes. This paper seeks to answer the following research questions: 1) How is Lean methodology adopted by researchers in higher educational institutes? 2) Which Lean tools and methods are most suitable in higher educational institutes? 3) What are the barriers and challenges associated with implementing Lean in higher educational Institutes? 4) What is the future of Lean implementation in higher educational institutes? This literature review comprises a wide range of journal articles published in the last five years, from 2019 to 2023, retrieved from various academic databases, including Emerald Insight, Science Direct, Taylor and Francis, Web of Science, and Wiley Online. PRISMA protocol is used to collect and arrange the journal articles (36% analytical and 64% applied Lean) under several themes: (1) curriculum review and teaching methodology; (2) administration; (3) student satisfaction; (4) lean waste identification and elimination; and (5) barriers and challenges. The paper concludes that the Lean philosophy, which was originally formulated for the manufacturing sector, has been successfully adapted and applied to educational institutes. The application of Lean in higher educational institutes resulted in streamlined processes, waste reduction, and increased staff and student satisfaction levels. However, it also highlights the barriers and challenges such as cultural barriers, resistance to change, lack of knowledge among staff and students, and lack of leadership commitment. Overall, the review paper adds up to the existing body of knowledge by integrating and summarizing the key findings and trends in the application of Lean methodologies in higher education.