Extended reality includes virtual reality which places the user into a virtual world and augmented reality which adds virtual elements to the real world. Extended reality has been touted as a pivotal technology as part of industry 4.0, but has yet to make a significant impact in industrial applications. Shipbuilding is a longstanding and traditional branch of industry which is characterized as slow to innovate. The importance of shipbuilding is rising as regions like the arctic are being unlocked and as a result additional demand is placed onto shipyards. In order to better accommodate increased demands, novel means for better efficiency are welcomed within shipbuilding. This article presents a systematic literature review analyzing the research in the use of extended reality within the shipbuilding industry. The focuses of this review are on the current extent of research being conducted, how different sub technologies of extended reality overlap with different phases of shipbuilding, and how technology is evaluated and what kind of value can be derived from current research. A total of 44 articles from nine sources are reviewed. The results indicate an overall early state of research characterized by a heavy focus on pilot research. Clear use cases for extended reality solutions are identified and some instances of demonstrable value for shipbuilding operations are presented. Shortcomings in the current research and potential future directions are also outlined.