This study aimed to evaluate the effects of providing feed in mash and pellet forms on dry matter intake (DMI), feed conversion efficiency (FCE), and daily milk production, and to understand the mechanism by which feed physical form enhances nutrient digestibility under tropical conditions. This study used a Systematic Literature Review (SLR) design following PRISMA guidelines, with literature searches conducted in the Scopus, ScienceDirect, and PubMed databases. The inclusion criteria were empirical articles in English published within the last 10 years. The quality assessment of articles was conducted using the MMAT instrument, and a thematic analysis was performed with the assistance of NVivo 14 software on 141 studies that met the criteria. The analysis showed that pellet feed consistently increased DMI compared to mash; however, this increase was not accompanied by a consistent rise in daily milk production. The use of pellets tended to have a negative impact on milk fat content (milk fat depression) and increased the risk of acidosis due to a decrease in rumen pH and a shift in fermentation toward propionate, especially if the effective fiber balance (peNDF) was low. Feed conversion efficiency (FCE) remained similar between the two feed forms. Pellet feed increased intake and energy availability through starch gelatinization; however, its use must be accompanied by strict management of effective fiber to maintain rumen pH stability and milk quality. Optimizing pellet use requires further attention to local feed ingredient formulation and the use of microbial additives to mitigate the risk of reduced milk fat.