Introduction: Osteoarthritis (OA) in the knee causes pain, stiffness, and instability, which reduces mobility and quality of life. Exercises for balance are crucial for knee OA because instability caused by OA increases the risk of falls and functional loss. Exercises for balance may help increase mobility, reduce discomfort, and stabilise joints, but traditional therapies may not fully address these issues. Aim: To examine the effect of balancing exercises on functional capacity, a sign of OA in the knee. Materials and Methods: Reputable search engines like Web of Science (WoS), Embase, PubMed and Google Scholar were used to collect academic literature. To find solutions to the study questions, the literature search was conducted using "proprioception," "pain," "function," "knee OA," "balance training," and "quality of life" as keywords. A 100 papers were chosen for this systematic evaluation. They were thoroughly examined in accordance with the PRISMA principles. Thirteen studies were included in the final analysis. The Risk of Bias (RoB) in the included studies was assessed using the Quality in Prognosis Studies (QUIPS) instrument and Cochrane risk of bias assessment tool. Results: Exercises for balance can successfully improve functional ability in patients with OA in the knee because they strengthen supporting muscles and enhance postural control. Balance exercises place less load on the knee joint than high-impact workouts while improving muscle activation and proprioceptive sensitivity around it. When treating OA, balance exercises are a safe, non-invasive method to increase a patient's mobility and quality of life. Clinically, they might reduce the risk of falls and enhance functional outcomes. Conclusion: People with OA in their knees can function better with balance exercises. This training may be an easy and affordable way to improve their functional ability and quality of life.