Computational Thinking (CT) is an essential twenty-first-century competence focusing on systematic problem-solving and supporting interdisciplinary learning. This study presents a systematic literature review examining the integration of CT in Early Childhood Education (ECE), underlining its core components—decomposition, pattern recognition, abstraction, and algorithmic thinking and emphasizing on innovative pedagogical strategies, including the use of educational robotics and unplugged activities. Tools like Bee-Bot, Blue-Bot, mTiny, and KIBO cultivate children’s problem-solving skills, critical thinking, and creativity, while unplugged activities, such as board games, storytelling, and other playful activities, support cognitive and motor skills development. The connection between Board games and CT fosters interactive and hands-on learning while enhancing collaboration. Challenges include curricula integration and professional development of educators, supporting them to understand how to use technology in an effective way. This systematic review reinforces the vital role of CT to nurture creativity, digital literacy, and interdisciplinary learning in early years, aligning with global educational standards and preparing children for a tech-driven future.