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Digital transformation is an inevitable trend that impacts all industries, and blockchain is one technology that drives it along with other emerging technologies. This paper conducts a systematic literature review (SLR) on how blockchain enables digital transformation. We analyzed 41 articles to identify the current state, clarify research gaps, and highlight future research agendas. The results reveal that blockchain is a promising technology that has great potential and can offer several opportunities for various companies. Collected articles contain evidence regarding challenges and barriers, as well as potential benefits of blockchain in relation to digital transformation. Through the detailed assessment of the chosen studies, a theoretical framework for blockchain enabled digital transformation has been developed. We highlight open issues that can be handled in future research to overcome barriers and address the challenges concerning blockchain adoption.