The built environment significantly contributes to climate change. There is pressure on the construction industry to find and use alternative sustainable environmentally friendly building materials to reduce the climate impact. Timber is increasingly being considered in the literature and used as a viable alternative for steel and concrete in both residential and non-residential building projects as it is a renewable material and has multiple benefits for reducing carbon (CO2) emissions and consequently climate change. This study aims to research the benefits of sustainable timber construction in terms of climate change. To achieve this aim, a systematic literature review was performed based on the research conducted between 1998 and 2022. For this purpose, research papers were searched from the Web of Science database and screened by applying a combination of keywords and the criteria for academic publication selection, including climate change, timber or wooden building, renewable material, sustainable material, carbon sink, carbon reduction, embodied energy, lifecycle assessment, and the circular economy. Further, a quantitative analysis of publications was performed using a science mapping approach, and qualitative content analysis was then conducted in three areas of research: timber as a sustainable construction material, the carbon storage of and reduction in GHG/CO2 emissions, and the circular economy. Research trends, general findings, and knowledge gaps were identified, and future research directions were indicated. The literature review proves that timber construction is a potential solution to reduce climate change.