External ventricular drain (EVD) insertion using the freehand technique is often associated with misplacements resulting in unfavorable outcomes. Augmented Reality (AR) has been increasingly used to complement conventional neuronavigation. The accuracy of AR guided EVD insertion has been investigated in several studies, on anthropomorphic phantoms, cadavers, and patients. This review aimed to assess the current knowledge and discuss potential benefits and challenges associated with AR guidance in EVD insertion. MEDLINE, EMBASE, and Web of Science were searched from inception to August 2023 for studies evaluating the accuracy of AR guidance for EVD insertion. Studies were screened for eligibility and accuracy data was extracted. The risk of bias was assessed using the Cochrane Risk of Bias Tool and the quality of evidence was assessed using the Newcastle-Ottawa-Scale. Accuracy was reported either as the average deviation from target or according to the Kakarla grading system. Of the 497 studies retrieved, 14 were included for analysis. All included studies were prospectively designed. Insertions were performed on anthropomorphic phantoms, cadavers, or patients, using several different AR devices and interfaces. Deviation from target ranged between 0.7 and 11.9 mm. Accuracy according to the Kakarla grading scale ranged between 82 and 96%. Accuracy was higher for AR compared to the freehand technique in all studies that had control groups. Current evidence demonstrates that AR is more accurate than free-hand technique for EVD insertion. However, studies are few, the technology developing, and there is a need for further studies on patients in relevant clinical settings.