Inquiry models of teaching and learning have a long history in education. With a focus on contemporary (2000-2018) empirical research, this systematic review of literature focuses on the question: What is known about how inquiry is used and framed in literacy preservice teacher preparation? Findings suggest that inquiry is an effective tool for preservice teacher learning, and although there are challenges (i.e. time, resources, preservice teachers' preconceived ideas about curriculum, and curricular constraints), preservice teachers can learn to enact inquiry-based teaching methods with transformative possibilities.