The localization of the Sustainable Development Goals (SDGs) has become a central dimension of sustainable urban development, as local governments play an increasingly important role in translating global sustainability agendas into place-based action. This study aims to provide a state-of-the-art assessment of how scholarly research has examined the relationship between local governance and SDG implementation over the period 2018–2025. A mixed-method review approach was employed, combining bibliometric mapping using VOSviewer with qualitative content analysis conducted through NVivo. Based on predefined inclusion criteria, 143 peer-reviewed articles indexed in the Web of Science database were systematically analyzed. The results reveal several dominant thematic clusters, including institutional coordination, sustainable urban planning, data-driven governance, accountability mechanisms, and the growing use of policy tools such as Voluntary Local Reviews (VLRs). The findings indicate an increasing emphasis on performance-based monitoring, participatory governance approaches, and multilevel institutional frameworks supporting the integration of the SDGs into local policy and planning processes. At the same time, persistent challenges are identified, particularly with regard to equity considerations, data inconsistencies, and the limited inclusion of marginalized urban communities in SDG-related decision-making. Overall, this review offers a structured and comprehensive overview of current research on SDG localization in urban governance and identifies key gaps and priorities for future research and policy development aimed at more inclusive, measurable, and context-sensitive pathways to sustainable urban development.