Purpose: The purpose of this literature review was to investigate how cooperative learning (CL) has been conceptualized and implemented in Chinese physical education (PE). CL is one of the most influential and widespread areas of theory, research, and practice in western education. With the promotion of Chinese government policies, CL has become a popular field of research and was widely used as a pedagogical practice in Chinese. Design/Approach/Methods: Shulruf's five methodological steps were utilized as the process of screening and selecting relevant studies. Inductive analysis and constant comparison were conducted for analyzing the chosen literature. Findings: The analytic induction revealed four key themes: (a) historical development, (b) policy influence, (c) conceptualization of CL, and (d) implementation of CL. We found that the conceptualization of CL in Chinese PE was ambiguous, and the implementation of CL was predominantly documented by quantitative research methods. In addition, few studies were conducted at the elementary school level. Originality/Value: This is a comprehensive literature review on CL in Chinese PE. Findings and recommendations in this article will be beneficial for policymakers, scholars, and PE teachers to better understand and promote CL in China.