The low achievement in literacy and numeracy among elementary school students in Indonesia, as reflected in the 2022 PISA ranking, shows that a more interactive and contextual learning approach is needed. This literature study aims to examine the potential of integrating gamification and local wisdom to improve the reading literacy and numeracy of elementary school students. This research used the Systematic Literature Review (SLR) method by reviewing peer-reviewed journal articles from the 2020–2026 period from four databases (Scopus, Google Scholar, ResearchGate, and Garuda), which were then analyzed through thematic analysis and qualitative content analysis, and synthesized into three main themes. The results of the study show that gamification is effective in increasing students' motivation and learning engagement through elements such as points, challenges, and rewards, but it is still vulnerable to the novelty effect and to digital infrastructure constraints. On the other hand, local wisdom is superior in presenting meaningful and contextual learning by connecting the material with students' culture and environment, although it tends to be delivered through less interactive media. The integration of the two, as reflected in the development of GAMASURA, GEMALOKA, and Nusantara IPAS Quest, is shown to be complementary: gamification overcomes boredom, while local wisdom overcomes the alienation of content from students' daily lives. The concept of integration is formulated through three principles, namely cultural contextualization as the theme of the game, the application of game mechanic elements as a driver of engagement, and the alignment of literacy-numeracy achievement with the preservation of cultural values. This study provides practical implications for elementary school teachers in designing gamified, local wisdom-based learning media, and recommends further, larger-scale experimental research to test its effectiveness empirically.