This systematic review addresses the difficulties of cultivating under variable environmental conditions and explores the growing importance of chili peppers (Capsicum annum L.) in worldwide agriculture. It emphasizes the use of enclosed growing systems as a workable way to increase crop yields of chilies. The needs of various chilies in these systems highlighting the significance of sustainability and resource efficiency for the best possible yield, quality, and financial sustainability. Shading is a crucial tactic to mitigate the adverse effects of sunlight and high temperatures, supporting healthier plants and regular fruit development. The study also looks into greenhouse cultivation to shelter plants from the weather and achieve higher yields, better development rates, and better‐quality fruit. This thorough analysis fills a research gap, offers helpful recommendations for maximizing production, and is an invaluable tool for practitioners and scholars studying enclosed chili agriculture.