Trait‐based approaches elucidate the mechanisms underlying biodiversity response to, or effects on, the environment. Nevertheless, the Raunkiæran shortfall—the dearth of knowledge on species traits and their functionality—presents a challenge in the application of these approaches. We conducted a systematic review to investigate the trends and gaps in trait‐based animal ecology in terms of taxonomic resolution, trait selection, ecosystem type, and geographical region. In addition, we suggest a set of crucial steps to guide trait selection and aid future research to conduct within and cross‐taxon comparisons. We identified 1655 articles using virtually all animal groups published from 1999 to 2020. Studies were concentrated in vertebrates, terrestrial habitats, the Palearctic realm, and mostly investigated trophic and habitat dimensions. Additionally, they focused on response traits (79.4%) and largely ignored intraspecific variation (94.6%). Almost 36% of the data sets did not provide the rationale behind the selection of morphological traits. The main limitations of trait‐based animal ecology were the use of trait averages and a rare inclusion of intraspecific variability. Nearly one‐fifth of the studies based only on response traits conclude that trait diversity impacts ecosystem processes or services without justifying the connection between them or measuring them. We propose a guide for standardizing trait collection that includes the following: (i) determining the type of trait and the mechanism linking the trait to the environment, ecosystem, or the correlation between the environment, trait, and ecosystem, (ii) using a “periodic table of niches” to select the appropriate niche dimension to support a mechanistic trait selection, and (iii) selecting the relevant traits for each retained niche dimension. By addressing these gaps, trait‐based animal ecology can become more predictive. This implies that future research will likely focus on collaborating to understand how environmental changes impact animals and their capacity to provide ecosystem services and goods.