Liveable settlement refers to living environment. In the context of Muslim settlements, while people situated in homogenic culture and religious traditions, there was quite confuse how to improve them in better qualities of physical conditions despite the density in their own settlements. This paper tries to find any current factors and challenges of liveable Muslim settlements. Muslim settlements indicated where research did and liveable factors and challenges analysis from literature data stated about the experiences of liveability aspects. The systematic literature review used by analysis 19 paper in last ten years from ScienceDirect online databases from 2010 until 2021. Descriptive analysis did by grouped the key words from all papers, indicated theme of research and conclude it to factors and challenges of research topic. Literature data indicated physical, non-physical, and socio-culture factors as important factors to make settlement will liveable. Challenges from design and planning phases until implementing phase can confirm the fulfil of ideal indicators of liveable Muslim settlements.