There has been a growth in interest among academics and professionals in psychological trust dynamics during climate change adaptation. This literature review aimed to examine the research concerning trust dynamics in climate change adaptation from different levels of analysis, encompassing the different phases of adaptation and considering the importance of trust in climate change decision-making. The method consisted of systematically reviewing researches on this topic published in scientific articles, by using appropriate and relevant search keywords (e.g., trust, community, natural hazard, climate change adaptation, decision-making) in academic databases. A total of 25 studies met inclusion criteria. All the articles focused on the latter phases of the climate change adaptation cycle, specifically implementation and monitoring/evaluation, with limited attention devoted to decision-making related to earlier phases of preparation, assessment of risks, and identification and selection of adaptation options. The reviews also indicates that psychological trust is related to different adaptive actions (e.g., adoption of renewable energy technologies), and low- and high-impact mitigation behaviors (e.g., acceptance of paying taxes for actions that mitigate climate change). Therefore, this review underscores the significant role of psychological trust dynamics in shaping individuals’ decision-making processes concerning climate change adaptation, thereby yielding immediate and direct implications for climate systems. Therefore, it is essential to actively promote the culture of trust within the context of climate change adaptation.