The combination of Agile methods and distributed software development via remote teams represents an emerging approach to address the challenges such as late feedback, slow project timelines, and high cost, typically associated with software development projects. However, when projects are implemented using an Agile model with distributed human resources, there are a number of challenges that need to be considered and mitigated. The objectives of our work are multifold. First, we would like to understand the reasons and conditions that lead to the adoption of distributed Agile software engineering (DASE) practices. Second, we would like to investigate and find out the most important risks that threaten a DASE approach and what mitigation strategies exist to address them. Finally, we would like to highlight which of the available approaches among the existing Agile methodologies has been successfully adopted by the community. We intend to solidify our findings by exploring the strength of the evidence that has been reported in the literature. We carried out a systematic literature review of DASE techniques and approaches. This systematic literature review found time zone difference, knowledge of resources, lack of infrastructure, missing roles, and responsibilities as being the primary challenges that needed to be addressed. Copyright © 2015 John Wiley & Sons, Ltd.