Despite the significance of context in international business studies, existing reviews on foreign divestment have combined findings from developed and emerging markets, obscuring context-specific antecedents, decisions, and outcomes. In this review, we systematically identify and synthesize theoretical and empirical research on foreign divestment from emerging markets based on 60 articles in reputed academic journals. We develop a conceptual framework that integrates the antecedents, decisions, moderating mechanisms, and outcomes of foreign divestment in emerging markets. While firm-level antecedents of foreign divestment are well-researched, external antecedents, decisions, moderating mechanisms, and outcomes are understudied. Additionally, we highlight that foreign divestment from emerging markets has positive and negative consequences for the firm and the host country. Drawing insights from our review, we delve into prospective research agendas, forging connections between contemporary research themes, divestment, and emerging markets. We propose that a multi-level approach to studying the antecedents and outcomes of foreign divestment will enhance our understanding of international business dynamics within an increasingly volatile global environment.