How do we nurture our young learners to develop skills for the twenty-first century? This chapter examines design thinking (DT) in an educational context for young learners through a systematic literature review. DT is an innovative pedagogical approach in early childhood education (ECE), particularly recognized for nurturing creativity, problem-solving, and collaborative learning at a young age. Although extant literature explores the role of DT in early education, it lacks a thorough analysis of best practices in early learning environments. The review addresses the knowledge gap by examining 25 studies on DT-based ECE available from 2013 to 2025, focusing on three key research questions: (1) What are the best practices for implementing DT in ECE? (2) How does DT influence assessment practices within ECE settings? (3) How has the implementation of DT impacted the learning environment of students and educators in ECE? This chapter investigates the best practices, assessment tools, pedagogical approaches, and their outcomes. The results indicate that integrating DT with STEM education, 3D modeling, educational apps, story-based learning, and play-based learning can drive a significant pedagogical shift. These practices must be age-appropriate, child-friendly, and integrated collaboratively within an interactive, inquiry-based learning environment. The chapter explores future research directions to enhance DT-based learning in early education, offering valuable insights for educators, curriculum designers, and researchers to build a strong foundation, refine pedagogical practices, and enhance learning experiences.