<p>Self-help groups (SHGs) serve as an important platform for providing financial services to people experiencing poverty, especially rural women with limited access to formal banking. This study presents a systematic review of the determinants of SHG performance and their role in fostering women’s empowerment and enhancing rural livelihoods. With an emphasis on rural settings in India, as well as other countries in South Asia and Sub-Saharan Africa regions, the review comprises 80 studies selected through a systematic screening process. It emphasizes the multidimensional nature of women’s empowerment, encompassing power, agency, and decision-making. While many SHGs exhibit strong financial and organizational performance, others face challenges related to group size, composition, irregular savings patterns, credit mechanisms, leadership quality, and information gaps. Empirical evidence suggests that SHGs are associated with improvements in women’s autonomy, awareness, and decision-making abilities, as well as savings, credit access, income, assets, basic necessities, and health. However, contextual factors such as social norms and institutional barriers significantly shape these outcomes. SHG interventions should be adapted to local contexts to more effectively achieve their intended benefits. Therefore, a contextually grounded micro-level study is necessary to fully understand how embedded empowerment unfolds within SHG ecosystems and to develop group-based interventions that are more adaptable and sustainable.</p>