This study identified teacher challenges in the implementation of the individualized education plan (IEP) for special educational needs (SEN) children with learning disabilities (LD). A systematic literature review (SLR) was conducted to identify and synthesize the literature on this topic. Twelve studies met the inclusion criteria and were included in the analysis. Most of the findings indicated that teachers face challenges in all three aspects of competency challenges, that is knowledge, skill, and attitude challenges. Lack of knowledge on criterion-referenced tests (f = 3; 42%) can be considered as the biggest knowledge challenge faced by teachers. The biggest skill challenge was also found in the evaluation process, with teachers being less efficient in carrying out the evaluation process (f = 4; 57%). In terms of attitude challenges, the lack of motivation (f = 4; 66%) in implementing the IEP for LD children is the most common challenge encountered by teachers. Therefore, the results of the analysis and research carried out can serve as a guide and reference for educators, the Ministry of Education (MOE), and future researchers in an effort to solve teachers’ competency challenges in the IEP implementation process. However, additional high-quality research or an empirical study should be conducted to verify the validity of the conceptual framework formed by conducting a survey study in Malaysia.