Physical activity and, more specifically, sport, can positively impact the body, mind, heart, and spirit of Aboriginal youth. Despite enthusiasm for these benefits, there is a paucity of published information reviewing the relationship between sport and physical activity, and Aboriginal youth development. The purpose of this systematic review was to provide an overview of research examining Aboriginal youth development in physical activity and sport settings. A review of literature was conducted up until July 2015 using 10 key databases and non-indexed Indigenous journals. Articles meeting the following criteria were retained: (a) involved an Indigenous population; (b) explored, either through empirical research or conceptualization, the notion of ''positive youth development'' and ''physical activity'', ''sport'', or ''recreation''. Thirty-five articles out of the 10,039 documents identified met the inclusion criteria. Thematic analysis revealed that physical activity and sport provides many positive developmental opportunities for Aboriginal youth to thrive (e.g., to incorporate Indigenous values and traditional ways, to strengthen resiliency, to improve all aspects of health, and to promote culture and education), as well as possible negative developmental experiences (e.g., racism, bullying, and exclusion). To our knowledge, this article presents the first review of research examining Aboriginal youth development in sport and physical activity and highlights how the activity context can shape Aboriginal youth development.