Physics is a theoretical science, understanding the concepts requires actual visual representations and models. Physics instructors should teach physics using inquiry, discovery, demonstration, simu- lation, practical work, lab-based activities, and other practical experi- ences. The current status of knowledge and practice regarding inter- active simulation in the teaching of modern physics is presented in this systematic literature review. By methodically evaluating and summarizing the most pertinent previous research publications pub- lished from December 2002 to January 2022, it offers guidance for in- structional designers and scholars. After careful consideration and screening, a total of eleven studies were chosen for a thorough analy- sis and synthesis. The results showed that the objective of the re- search studies on using interactive simulation in modern physics is to enhance students' critical thinking skills and creative problem-solv- ing skills. It has been demonstrated that interactive simulation tech- nologies like Java applets and Physics Education Technology (PhET) are successful at teaching modern physics. The success or failure of employing interactive simulation is influenced by teachers, school staff, students, simulation design, and technology used. The findings imply that educational institutions should provide teachers and ad- ministrators with tutorials and training, and this review recommend that the interactive simulation should be available and that a gadget- friendly simulation must be developed.