Background: Professional identity and professional competence are important dimensions of school counselors' professional functioning because they influence how counselors understand their professional roles and enact guidance and counseling services in school settings. However, existing research has examined professional identity and counselor competence from different conceptual, organizational, cultural, and professional perspectives, resulting in fragmented evidence. Aim: This Reseacrh aimed to synthesize research concerning school counselors' professional identity and competence in the implementation of guidance and counseling services and to examine the relationship between the two constructs. Method: The review employed a systematic literature review design guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. Relevant literature was searched through the Scopus database for publications from 2015 to 2025. Studies were selected using predefined inclusion and exclusion criteria and were analyzed through thematic synthesis. The initial search identified 68 records, of which 10 studies met the eligibility criteria and were included in the final synthesis. Result and Discussions: The findings indicate that school counselors' professional identity is multidimensional and includes clarity of professional roles, implementation of professional functions, positioning within the school context, commitment to professional goals and values, integration of professional knowledge, attitudes and behavior, negotiation of role conflicts, and psychological attachment to the profession. Counselor competence was also found to extend beyond basic counseling skills and included personal, social, academic, and career service competence; relational and collaborative competence; cultural and contextual competence; religious and spiritual competence; competence in handling sensitive cases; and adaptability to organizational demands. The reviewed evidence indicates that professional identity and counselor competence are interconnected but conceptually distinct dimensions of professional functioning. Their relationship is influenced by professional experience, organizational resources, institutional expectations, and sociocultural context. Conclusions: The findings highlight the importance of integrating professional identity development with competency development in counselor education, supervision, and continuing professional development.