Digital technology is increasingly used in STEM education for young children aged 0–8 years. An extensive literature search was conducted using seven databases to systematically investigate the effect of digital technology on young children’s STEM education. Twenty-two eligible articles published from 2010 to 2021 were identified. Results showed that robotics, programming, and multimedia were used to support young children’s STEM education. Digital technology plays different roles in the process of STEM education. Outcomes also showed that digital technology positively affected young children’s STEM education in terms of STEM knowledge or skill acquisition and learning engagement. This was regardless of gender but relevant to age and the learning condition. Participating children and teachers reported high acceptance and satisfaction with the included programs. However, many difficulties, challenges and criticisms were revealed by the extracted data, including how digital technology is used in young children’s STEM education, the nature of young children, the requirements placed upon educators, and different types of adult–child interactions. We also look at the limitations of the study design within included studies and provide recommendations accordingly.