The increased interest of public organizations in using corporate branding principles creates a need to understand how to implement such principles effectively. Although previous research investigates challenges related to branding in this context, the findings provide contradictory evidence and opposing recommendations. The purpose of this study is to conduct a systematic review of literature on branding in the public sector and to explore directions for future research. The results demonstrate that owing to the distinct differences between the private and public sectors, there is a need to adapt branding principles to meet the sector-specific challenges faced by public organizations. However, the extent of the required changes needs further research. This literature review presents a number of potential directions for future studies, which focus on diverse topics related to the internal and external aspects that are crucial to the successful branding of public organizations.