Modular timber construction embodies a pioneering and eco-friendly methodology within the building sector. With the notable progress made in manufacturing technologies and the advent of engineered wood products, timber has evolved into a promising substitute for conventional materials such as concrete, masonry, and steel. Beyond its structural attributes, timber brings environmental advantages, including its inherent capacity for carbon sequestration and a reduced carbon footprint compared to conventional materials. Timber’s lightweight nature, coupled with its versatility and efficiency in factory-based production, accelerates modular construction processes, providing a sustainable solution to the growing demands of the building industry. This work thoroughly explores contemporary modular construction using wood as the primary material. The investigation spans various aspects, from the fundamentals of modularity and the classification of modular timber solutions to considerations of layout design, structural systems, and stability at both the building and module levels. Moreover, inter-module joining techniques, MEP (mechanical, electrical, and plumbing) integration, and designs for disassembly are scrutinized. The investigation led to the conclusion that timber modular construction, drawing inspiration from the steel modular concept, consistently utilizes a structural approach based on linear members (timber frame, post-and-beam, etc.), incorporating stability configurations and diverse joint techniques. Despite the emphasis on modularization and prefabrication for adaptability, a significant portion of solutions still concentrate on the on-site linear assembly process of those linear members. Regarding modularity trends, the initial prevalence of 2D and 3D systems has given way to a recent surge in the utilization of post-and-beam structures, congruent with the ascending verticality of buildings. In contrast to avant-garde and bold trends, timber structures typically manifest as rectilinear, symmetric plans, characterized by regular and repetitive extrusions, demonstrating a proclivity for centrally located cores. This work aims to offer valuable insights into the current utilization of modular timber construction while identifying pivotal gaps for exploration. The delineation of these unexplored areas seeks to enable the advancement of modular timber projects and systems, fully leveraging the benefits provided by prefabrication and modularity.