Background: Food allergy is the third most commonly diagnosed allergic disorder in children, particularly during infancy and preschool years. Its prevalence has been rising rapidly in recent years, making it a significant public health concern. This study aims to conduct a systematic review of the impact of childhood food allergies on quality of life. Methods: A comprehensive search of databases from the last five years was conducted following the PRISMA guidelines, resulting in the selection of 21 relevant articles. Results: The findings indicate that food allergies significantly reduce children’s quality of life, with age, the number of allergens, and allergy severity being key determinants. Affected children experience higher levels of anxiety, depression, and reduced psychosocial functioning. Caregivers also face substantial burdens, including constant concerns over accidental exposure, limitations in social activities, financial strain, and increased work absences. In school settings, these children are more prone to teasing or bullying, highlighting the need for increased education and social awareness. Conclusions: Food allergies significantly impact the quality of life for both patients and their families, especially mothers, with worsening effects as children age, including heightened risks of bullying and social limitations, highlighting the need for education, psychological support, and resource allocation.