Objective: This systematic literature review examines the opportunities and challenges associated with these incubators. Method: Through a comprehensive search of academic databases, government reports, and grey literature, relevant studies were analyzed using thematic analysis. Results and Discussion: The review revealed that academic entrepreneurship, networking, government policy and resources are important themes that characterize vocational education business incubators. These incubators offer valuable opportunities, including skills enhancement, mentorship, networking and market validation. However, challenges related to limited funding, alignment with industry needs, awareness and evaluation were also identified. Research Implications: Recommendations were proposed to strengthen academic entrepreneurship, increase networking opportunities, promote government support and policies, and increase awareness and outreach. While this review acknowledges limitations in the availability of literature and potential language and publication bias, it provides valuable insights to inform policymakers, educational institutions, and stakeholders in optimizing the impact of vocational education business incubators and fostering a thriving entrepreneurial ecosystem in Indonesia. Originality/Value: Vocational education business incubators have emerged as a promising approach to bridge the gap between education and industry in Indonesia.