A design process is a guiding framework for designers to navigate various phases to create products effectively and efficiently. Several models of design processes discuss the phases (or sub-phases) in different names but consist of four generic stages: exploration, generation, evaluation, and communication. They are crucial for the development of an impactful design. Numerous research studies have been undertaken on design processes; however, research on the design processes used by craftspeople in the handicraft sector of developing countries is limited and fragmented. There is an important need to review this extant research. This paper presents a systematic literature review (SLR) in this field. The SLR is conducted using two databases—Scopus and Web of Science. According to the findings, the publications reviewed are analyzed based on: (1) the context of the findings, such as income, settlement (rural or urban), gender, country, and sector, and (2) the research methodologies used, such as type of study (qualitative or quantitative), nature of the study (descriptive or prescriptive), and data collection methods. Based on the review results, the paper highlights the prevalent challenges faced by craftspeople, highlighting the scarcity of design research within the handicraft sectors of developing countries.