The software companies are using Agile methods and practices totackle challenges in the rapidly changing environments and increasingly com-plex software systems. However, companies developing cyber physical systems(CPS) are still infancy in the use of Agile methods and hesitate to adopt. Thissystematic literature review was conducted in order to analyze the current trendsof Agile methods use for CPS development. The search strategy resulted in 101papers, of which 15 were identified as primary studies relevant to our research.The results show growing trend of Agile processes and Scrum is widely usedreported for CPS development. The primary studies also exhibits a growinginterest in teaching Agile in embedded systems, CPS and other engineeringdegree programs. The reported challenges included synchronization of softwareand hardware development, software and hardware developers use differentvocabulary, lack of visibility and track of software releases and project progress.Additionally, lesson learned were extracted from the primary studies for guidingthe practitioners interested in adopting Agile for CPS development.