The world’s economic structure is increasingly moving towards a digital framework, boosted by the fourth industrial revolution. As a versatile sector, tourism is also embedded within this digital transformation process, albeit at a slower pace due to the uncountable challenges and uncertainties surrounding it. Nevertheless, the most recent implications of the pandemic crisis warned both managers and politicians of the urgent need for new development paths aligned with sustainability, particularly with the United Nations’ sustainable development goals. Furthermore, direct issues related to tourism activity, such as overtourism, pollution, and economic dependency, call for alternative and balanced approaches. Smart and digital solutions might play a key role in this process, but little is known concerning their potential. Aiming to extend knowledge concerning these potentials, a systematic literature review was conducted to examine the state-of-the-art about the implications of digital transformation in tourism as a catalyst for sustainable development, identifying gaps and providing directions for future research. From the analysis of 38 manuscripts, visitor experience, destination management, business solutions, and smart sustainable destinations emerged as the most common topics. However, inconsistencies were identified concerning the management narratives and the actual implementation of smart approaches. Additionally, the novelty of the concepts gravitating around smart tourism promotes some theoretical inconsistencies, which also need to be remedied.