Research on pragmatic competence involving various approaches has received increasing attention since 1980 when interlanguage pragmatics began to flourish. The aim of this systematic review was to examine and categorize contemporary studies on pragmatic competence of EFL and ESL students and to reveal potential moderators, compare results of studies, and offer a balanced summary of the topic. The data selection procedure followed PRISMA guidelines in which forty-two studies published from 1993 to 2023 were selected from the Web of Science and Scopus databases. The findings revealed that the concept of pragmatic competence has witnessed dramatic attention worldwide in the last three decades, especially in EFL context. The overall pragmatic competence of EFL learners is at a low level, while most ESL learners have a relatively higher level. The relationship between language proficiency and pragmatic competence is inclusive, requiring further investigation. This review also highlights the influencing factors which require further exploration in relation to EFL and ESL learners' pragmatic competence. The study also pointed out the gaps, overlooked variables and constraints in previously published research. This systematic review contributes to the research agenda for future studies seeking to progress the knowledge and practice of quality language education in this respect.