Unmanned aerial vehicles (UAVs) have proven to be a key solution for nearly automated or smart warehouse operations, enabling receiving, picking, storage, and shipping processes to be timely and more efficient. However, there is a relative scarcity of review studies specifically on UAV-based warehouse management. Research knowledge and insights on UAV applications in this field are also limited and could not sufficiently or practically support decision-making on commercial utilization. To leverage the potential applications and current situation of UAVs, this study provides a systematic literature review (SLR) on UAV adoption in warehouse management. SLR approach was critically conducted to identify, select, assess, and summarize findings, mainly on the two descriptive research questions; what are the past applications of UAV, and what are critical factors affecting UAV adoption in warehouse management? Five key critical factors and 13 sub-factors could be observed. The results revealed that hardware (e.g., payloads, battery power, and sensors) and software factors (e.g., scheduling, path planning, localization, and navigation algorithms) are the most influential factors impacting drone adoption in warehouse management. The managerial implications of our research findings that guide decision-makers or practitioners to effectively employ UAV-based warehouse management in good practice are also discussed.