The application of Challenge-Based Learning (CBL) has increased in higher education institutions, fostering student transversal competencies, knowledge of sociotechnical problems, and collaboration with industry and community actors. However, a broad range of different frameworks, hybrid approaches, and educational interventions are using this term to define their approach. This lack of standardization creates definitional and conceptual challenges for the domain. A review of CBL literature was conducted to examine key characteristics, challenges and benefits, and educational factors. A total of 100 articles were reviewed using a qualitative thematic matrix. Results describe CBL benefits despite many institutional, practical and academic challenges. Although there was much variability in CBL approaches, eight common characteristics emerged from the literature. This research can support future research and implementation of CBL by providing a guiding conceptual framework and a preliminary classification of CBL approaches.