The domain of Location-based Augmented Reality (LBAR) in education is growing rapidly with the increasing ubiquity of mobile devices and their advanced capabilities. LBAR enables the superimposition of digital content onto physical environments and has been recognized for its transformative potential in educational contexts. Despite its advantages, the adoption of LBAR in education remains limited, hindered by several challenges. This paper presents a systematic review of peer-reviewed literature from 2000 to 2023 to assess the current state of LBAR in education. It explores 1) the state of the art in LBAR research, 2) its use cases and reported impacts across educational levels, and 3) the challenges and limitations identified in existing studies. Among the 50 studies included in the review, 38 % of investigated studies indicate a positive acceptance of LBAR and evident enthusiasm regarding LBAR's application for learning purposes. However, multidimensional complexities are revealed at the methodological, technological, pedagogical, and at content and organisational levels. While LBAR tools present strong potential to enhance learning experiences, that potential is not yet fully realized. Their long-term value depends on how well they are integrated into established pedagogical practices, learning content, and educational contexts.