The existing paradigm on recovery in mental health prioritises self‐empowerment and person‐centred, community‐based care, which necessitates family caregivers' collaboration to support individuals with schizophrenia in the community. However, the role of family caregivers is often under‐recognised and hence insufficiently supported. This consequently compromises caregivers' well‐being and, ultimately, the recovery of individuals with schizophrenia. Although caregiver‐targeted psychoeducation may offer practical support, its effectiveness lacks conclusive evidence. This review aimed to evaluate the impacts of psychoeducation on caregiver‐related outcomes (caregiver burden, quality of life and expressed emotion). Eight electronic databases were searched from inception to September 2023, supplemented by hand searching of end‐reference lists. Two reviewers independently conducted title and abstract screening with predetermined eligibility criteria. A third reviewer was consulted to resolve any discrepancies. A random‐effects meta‐analysis was performed to estimate pooled effect sizes alongside subgroup and sensitivity analyses where appropriate. Twenty‐one studies (totalling 1639 caregivers) were included, based on which psychoeducation contributed to a statistically significant improvement in caregiver‐related outcomes. Given substantial heterogeneity, subgroup and sensitivity analyses were done for the durations and the evaluative scales for psychoeducation. Quality appraisal revealed unclear or high bias in most studies. Notwithstanding the heterogeneity, the directions of the effect sizes consistently indicated the effectiveness of psychoeducation across all outcomes. This finding aligned with Lazarus' stress appraisal and coping theory, which states that psychoeducation improves caregivers' knowledge, coping mechanisms and situation appraisal. Our findings offer encouraging evidence to advocate the integration of psychoeducation into healthcare services, but policy‐based support is warranted for sustained implementation. Further research is merited to optimise its duration and content and appraise its long‐term impacts through disease‐specific scales for objective and subjective outcomes.