Indonesian students’ science performance remains below international benchmarks: in PISA 2022, Indonesia scored 383 in science, compared with the OECD average of 485 (OECD, 2023). This systematic literature review examines how local wisdom and ethnoscience have been integrated into inquiry-based science education at the K–12 level, with a focus on physics, and how the reviewed studies describe students’ scientific literacy and critical thinking. Following a PRISMA-guided process, the review drew on 306 initially identified records from Scopus (n = 106) and Google Scholar (n = 200), of which 51 studies were included in the content analysis in the current manuscript contains 51 studies. A separate bibliometric analysis used the 106 Scopus records to map publication trends, source journals, and keywords; annual output rose from 2 articles in 2015 to 28 in 2024. In the 51-study dataset, Guided Inquiry was the most frequently coded learning model (23.5%), followed by Problem-Based Learning (15.7%) and Project-Based Learning (11.8%). Nineteen studies addressed an identifiable physics topic, mainly simple machines, gravity, and measurement, whereas electricity and optics appeared infrequently and modern physics and thermodynamics were not identified in the current coding. Outcomes were synthesized narratively because study designs, instruments, and reporting formats differed; no cross-study N-gain mean, range, or pooled effect size was calculated. The review recommends developing inquiry-based designs for less-represented physics topics, documenting a wider range of local wisdom, and conducting longitudinal studies to support SDG 4: Quality Education.