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In recent years, there has been a rise in recognition of the need for computing education to bridge the gap between academia and industry. In addition, educational researchers are also interested in increasing student engagement by grounding learning experiences in real-life concerns, community issues, or personal interests. Unfortunately, traditional lecture-based teaching techniques often fail to prepare students for the challenges they will face in real-world software development scenarios. Project-Based Learning (PjBL) takes a different approach by immersing students in real-world software engineering projects, allowing them to apply theoretical knowledge in practical contexts, building practical skills, fostering critical thinking, and improving problem-solving abilities. Prior literature reviews have explored aspects of PjBL in computing education, such as communication support, educational effectiveness, sprint organization, and capstone course design. However, no literature review extensively and comprehensively examines the following questions as a whole: where PjBL is used, how it is taught, why it should be used, and what challenges to expect in software-related computing courses. The review takes a systematic approach, incorporating a thorough search strategy across four academic databases and targeting keywords associated with PjBL and software computing in higher education. A total of 34 PjBL course attributes were extracted from 184 selected primary studies, which contributed to answering six research questions: (1) What computing courses use PjBL? (2) What is the nature of software projects used? (3) How are these projects organized? (4) How are students assessed and evaluated? (5) What are the reported impacts of PjBL? and (6) How are students supported throughout the projects? The literature review makes four key contributions: a description of the nature of software projects used and how these projects are organized, a highlight of the impacts of PjBL and the methods used to measure those impacts, a summary of the various forms of support provided to students throughout their projects, and the list of challenges encountered in implementing PjBL and recommendations to alleviate those challenges. This comprehensive review offers new insights and serves as a catalog of best practices for computing educators.