Caffeine is an ergogenic aid in many sports, including basketball. This systematic review examines the effects of caffeine on basketball-related skill tasks along with physical aspects of performance deemed important for the game. A systematic search was conducted across three databases (PubMed, SPORTDiscus and Web of Science) to identify randomized-controlled trials which examined the effect of caffeine on basketball performance outcomes including: free-throw, 3-point shooting accuracy, dribbling speed, vertical jump height, and linear and repeated sprints. Forty-six articles were identified of which 10 met the inclusion criteria. Improvements in vertical jump were identified in four of five studies, agility in two of four studies, and in linear and repeated sprints in two of three studies. No deterioration in basketball skills performance was observed in any studies. It is suggested that caffeine is useful for basketball players to improve the physical aspects of their game-play performance but there is little evidence of any change in skill-based performance at present. Further research should clarify the effects of caffeine on basketball performance in women and the role of individual genetic variation on caffeine metabolism. Basketball players and coaches should be aware of the properties of caffeine before ingesting it as an ergogenic supplement.