The increasing demand for high-quality electric power requires a reliable and secure supply. While underground installations meet these requirements, aging cable insulation can lead to failures and disruptions that negatively affect consumers. An effective strategy to mitigate these issues is the early detection and localization of incipient faults before they cause major disruptions in the electrical system. However, a significant gap exists in the literature, particularly in the field of incipient fault localization in underground cables, which lacks a comprehensive systematic review. This paper addresses existing gaps in the literature by reviewing and consolidating the main methodologies, tools, and applications for incipient fault localization. This review aims to establish a solid foundation for developing new solutions and methodologies, encouraging future advancements in underground network reliability. This can be achieved through the detection and localization of incipient faults, which are lowintensity, short-duration electrical discharges that precede a total failure. However, despite growing interest in this topic, there are still discrepancies in methodologies and approaches. Moreover, there is a lack of studies that provide a solid foundation for advancing research in this area. This paper aims to address this gap by reviewing existing literature and consolidating the key techniques, methods, tools, and applications discussed in the studies thus far. The systematic review is structured to provide an overview of the methodologies used, assessing their results, effectiveness, and limitations. Additionally, it identifies emerging trends and highlights promising opportunities for future research, encouraging the development of new studies and solutions. The information compiled here aims to facilitate the integration and advancement of knowledge in this field, contributing to the development of more effective solutions for the localization of incipient faults in insulated cables.