Externalizing behavior problems in children reflect negative actions toward the external environment and can have detrimental consequences for their academic, social, and mental well-being. These actions range from breaking the rules to exhibiting extremely disruptive and aggressive behaviors, and they frequently come with issues with social behavior and emotional control. Socioemotional competencies, such as empathy and emotion regulation, serve as protective factors against behavior problems, enabling children to effectively manage their emotions and behaviors. This study focuses on examining the effectiveness of child-centered play therapy (CCPT) in reducing externalizing problems and enhancing socioemotional competencies in children aged 3 to 12. CCPT utilizes play as a natural language to establish a therapeutic relationship between play therapists and children. This relationship provides a safe and accepting environment for children to express themselves and develop self-regulation skills. By accepting responsibility for their actions, children can progress toward self-actualization and improved behavior management. To investigate the effectiveness of CCPT in reducing externalizing behavior problems and increasing socioemotional competencies in children, a systematic literature review was conducted, considering studies published over the last decade. Four databases were analyzed, and six articles met the predetermined inclusion criteria. While the data extracted from the included articles demonstrated promising results regarding the effectiveness of CCPT in reducing externalizing problems, the impact of CCPT on enhancing socioemotional competencies was not clear. It is important to acknowledge the limitations of this study, including the scarcity of research in this field and small sample sizes, which impede the generalization of the results to all populations. However, this study identified a research gap concerning the effectiveness of child-centered play therapy in addressing externalizing problems and children's social and emotional functioning. Future research is required to have a more comprehensive picture of how CCPT reduces externalizing problems and what abilities it gives children to cope with their problems; otherwise, it is not possible to consider CCPT as an evidence-based intervention for externalizing problems and widely use it for all children based on current data in the literature.