In the current dynamic markets, characterized by competitive economies, innovation is deemed to be the peak of success in most business projects. However, studies dedicated to the relationship between innovation adoption and project performance, particularly the former's impact on the latter, still remains lacking. Thus, this paper's main objective is to shed light on the impact of innovation adoption on project performance through a thorough systematic review of literature dedicated to the subject. The literature review findings provide insight into the significance of innovation adoption in the context of project management. The study findings also contribute to the promotion of awareness concerning the innovation adoption role in enhancing project performance. Managers can use the findings to enhance project innovation capability through the acknowledgement of the different aspects of innovation.