Caffeine supplementation has become increasingly popular among athletes. The benefits of caffeine include delaying the negative effects of fatigue, maintaining a high level of physical and mental performance, and improving certain abilities necessary for sport success. Given the complex nature of basketball, caffeine could be a legal, ergogenic stimulant substance, which will positively affect overall basketball performance. The purpose of this systematic review was to summarize evidence for the effect of acute caffeine ingestion on variables related to the basketball performance. Web of Science, PubMed, Scopus and ProQuest, MEDLINE, and ERIC databases were searched up to February 2021. Studies that measured the acute effect of caffeine on basketball performance were included and analyzed. Eight studies published between 2000 and 2021 were included in the analysis. Pre-exercise caffeine intake increased vertical jump height, running time at 10 and 20 m without the ball, overall basketball performance (number of body impacts, number of free throws, rebounds, and assists) during simulated games, and reduced the time required to perform a basketball-specific agility test. Equivocal results between caffeine and placebo groups were found for aerobic capacity, free throw and three-point accuracy, and dribbling speed. Pre-exercise caffeine ingestion did not affect RPE, but insomnia and urinary excretion were increased. The pre-exercise ingestion of 3 and 6 mg/kg caffeine was found to be effective in increasing several physical performance variables in basketball players during sport-specific testing and simulated matches. However, considering the intermittent nature and complexity of basketball, and individual differences between players, future studies are needed.