Design thinking (DT) is a creative, innovative and human-centred mindset and process which employs multi-disciplinary collaborative teams to yield user-focused experiences or services and products. DT stands as a promising teaching approach in education since it is constructed on the notion that student learns through dealing with wicked issues. Such an approach to implement in a school setting is not straightforward. Through systematic literature review, the study enumerates reports, reviews, different scholarly works and theoretical reflections to enhance the understanding of DT context, benefits, affordances, effects, limitations, outcomes and purpose of DT in the education sector. The article explicated the systematic article selection about characteristics of DT, to make it fruitful in education, its approach, how it is innovatively utilised to develop pedagogy in K-12 schools, lessons learnt in its application, techniques and tools applied in DT.  The existing literature was reviewed, and studies were synthesised to bring out a preliminary analysis of the researchers on DT to be used as a pedagogical approach in K-12 schools.  However, the paper seeks to enunciate how this design education offers a sound-based foundation not alone towards traditional academic education or professionals indulged in knowledge or design-based industries, but significantly it imparts problem-skills like curiosity, innovation, communication, citizenship, empathy, social skills, facilitation, critical ideas thinking and creativity by this DT approach on school students. Since these skills traverse beyond peculiar knowledge-focussed fields and lie sound-based for a person’s career, hence this DT-based education is recommended to be utilised as a paradigm to get adopted in school.