Three Dimensional Virtual Worlds (3DVW) have been substantially adopted in educational and pedagogical fields worldwide. The current study conducted a systematic literature review of the published research relevant to the application of 3DVWs in higher education. A literature search was performed in eight high-ranking databases, and following scrutiny according to inclusion criteria, 164 papers were selected for review. The systematic literature review process was summarized, reviews undertaken by the authors, and results about the applicability of 3DVWs in higher education were extracted. A wide variety of application areas for the 3DVWs in higher education were found, and were classified into five main categories. Various 3DVW platforms and virtual environments used for educational goals were also identified. The results revealed Second Life as the most popular 3DVW platform in higher education. This study also found that by using 3DVW technology a wide range of virtual environments and virtual tools have been designed and applied in teaching and learning for higher education.