Luxury, historically an exclusive, rare and elitist phenomenon, is changing. This is predominantly driven by technological developments, particularly social media, and the rising level of consumer empowerment in the marketplace. A maturing stream of research has emerged assessing the effects of social media platforms on luxury brands, offerings and consumers. However, there has been no comprehensive analysis of this extant literature synthesizing the current state of knowledge and postulating future research directions. This paper addresses this gap by utilizing a systematic literature review approach. A total of 115 articles were collected and analysed and five core themes were identified, examining (1) luxury brand strategy, (2) luxury brand social media communications, (3) luxury consumer attitudes and perceptions, (4) engagement and (5) social media's influence on brand performance-related outcomes. These themes are comprehensively explored to understand the myriad impacts of social media on luxury businesses before conceptualizing the themes as a holistic framework explaining social media's role within luxury. The framework developed highlights the fragmented yet progressive nature of research on the confluence of social media and luxury, and signals fruitful avenues for further inquiry. It is proposed that scholarly attention is directed towards multiple lines of inquiry, including social media's role in luxury brand construction online, social media's role in facilitating ‘moments of luxury’, younger consumers’ luxury consumption, as well as the integration of both future innovative technological developments and novel social media platforms within luxury branding.