Fire, a prevalent land management tool in rotational shifting cultivation (RSC), has long been debated for its immediate disruption of surface soil, vegetation, and microbial communities. While low-intensity and short-duration slash-and-burn techniques are considered beneficial for overall soil function, the dual nature of fire’s impact warrants a comprehensive exploration. This review examines both the beneficial and detrimental effects of fire on soil properties within the context of RSC. We highlight that research on soil microbial composition, carbon, and nitrogen dynamics following fire events in RSC is gaining momentum. After fires, soil typically shows decreases in porosity, clay content, aggregation, and cation exchange capacity, while sand content, pH, available phosphorus, and organic nitrogen tend to increase. There remains ongoing debate regarding the effects on bulk density, silt content, electrical conductivity, organic carbon, total nitrogen, and exchangeable ions (K+, Ca2+, Mg2+). Certain bacterial diversity often increases, while fungal communities tend to decline during post-fire recovery, influenced by the soil chemical properties. Soil erosion is a major concern because fire-altered soil structures heighten erosion risks, underscoring the need for sustainable post-fire soil management strategies. Future research directions are proposed, including the use of advanced technologies like remote sensing, UAVs, and soil sensors to monitor fire impacts, as well as socio-economic studies to balance traditional practices with modern sustainability goals. This review aims to inform sustainable land management practices that balance agricultural productivity with ecological health in RSC systems.