Background: Physical and psychological impact of traumatic childbirth is often de-emphasized and under-reported, which may have profound implications on the mother’s general well-being. This systematic review examines the psychological and physical impacts of birth trauma on mothers, aiming to integrate existing research and identify gaps. Method: The study conducted a comprehensive search across PubMed, PsycINFO, CINAHL, Scopus, Web of Science, and Cochrane Library, selecting studies based on relevance and methodological quality. Meta-analyses were performed to pool data where possible. The review included ten studies highlighting that birth trauma is linked to significant psychological outcomes like PTSD, anxiety, and depression, and physical issues such as pelvic floor dysfunction and chronic pain. Results: The review found that there is lack of diversity in study populations, insufficient integration of physical and psychological impacts, and the coping mechanisms and interventions. The findings noted the necessity for a holistic approach to maternal care that addresses both psychological and physical aspects of birth trauma. Conclusion: This review highlighted the insufficient integration of psychological and physical impact of birth trauma to mothers. It calls for future research to adopt a more comprehensive approach, recognizing the interplay between mental and physical health outcomes. Furthermore, maternal healthcare systems should incorporate integrated interventions and support systems to address these multi-faceted impacts. Improved awareness and care models could significantly enhance maternal well-being and recovery after traumatic childbirth.