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ABSTRACT Retailers are increasingly using sustainability to redefine the role of private label (store) branded products within their overall retail strategies. Therefore, this study is based on a systematic literature review that synthesizes the existing body of knowledge on sustainability and private label branding and identifies the need for theoretical development and research gaps in the area. The systematic literature review was conducted in accordance with the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta‐Analyses) guidelines, including all relevant research published between 2000 and 2025, identified through the databases Scopus and Web of Science. After screening the studies with rigorous criteria, 43 peer‐reviewed studies were selected for thematic analysis. The results indicated that private label brands have transitioned from being low‐cost alternatives to retailers' product offerings to becoming strategic retail assets, where sustainability acts as a key element to define competitive dynamics, retailer–manufacturer relationships, and consumers' perceptions of private label brands. Additionally, seven themes were found to describe the ways in which sustainability affects store‐brand strategy, distribution channel power, brand identity, trust development, value perception, and consumers' behavioral responses to private label brands. It has been demonstrated that sustainability efforts lead to increased intentions to purchase, loyalty, and shop visits by increasing trust among consumers and reducing perceived risk and enhancing retailer legitimacy. Building on these findings, an integrated conceptual model was developed linking sustainability‐driven retail tactics, supply chain coordination, and customer response to store‐brand strategies.