The conversion of the natural environment to forest plantations alters the surrounding environment and vegetation structure and consequently modifies the microclimate conditions. These changes in land use and microclimate can influence rainfall patterns and increase the likelihood of fire occurrence. Forest plantations are particularly susceptible to fire due to their vegetation structure, which often includes grasses, bushes, and highly flammable tree species such as Eucalyptus. This review aims to investigate the extent of and advances in existing research on the relationship between Eucalyptus, microclimate changes, and forest fire occurrence. A comprehensive review of relevant literature was conducted, synthesizing past studies on selected topics and assessing the scope and depth of information presented in the research. Key findings from the reviewed articles are discussed to identify prevailing themes and gaps. This review concludes by providing recommendations for future studies, such as furthering research on the physiological performance, biodiversity, hydrology, and soil processes.