This paper presents a literature review with the purpose of characterizing the Dynamic Manufacturing Cell Formation Problem by means of the identification of optimization criteria, the most relevant restrictions needed for consideration and the most frequently used solution methods. Hence, an adaptation of the PRISMA statement was conducted for systematic reviews along with Snowball Methodology to select the studies to be analyzed. The document search is carried out in the Web of Science and Scopus databases, considering a time frame between 2007 and 2019. As a general result, it was found that cost minimization is the most frequently used optimization criterion and the typically considered constraints are associated with part machine operation sequence, machine breakdowns, and lot size. On the other hand, considering the highly combinatorial nature of the optimization problems reviewed, it was found that metaheuristics are the most used solution method, and genetic algorithms as well as simulated annealing are the most frequently implemented. Finally, three research trends are determined: incorporation of two or more optimization criteria in a mathematical formulation, development and implementation of hybrid metaheuristic algorithms, and comparison of performance of the existing solution methods based on reference problems or real industrial applications.