The purpose of this paper is to review published literature on the diversity of lichens and the factors that affect its distribution in the neotropics. The systematic method was used to research works of literature on “Diversity of lichens and what factors affect their distribution in the neotropics.” A total of forty-nine research papers published between the years 1996 to 2021 was selected and utilized for this review. The results obtained was presented in tables. A subjective approach was then used to select the subtopics: lichens and their impact- benefits and importance. In this paper, twelve (12) neotropical countries were evaluated and a grand total of four hundred twenty-seven (427) lichens species of lichens from fifty-eight (58) lichen families were presented. Lichen distribution and habitats, diversity of lichens and factors that affect the distribution of lichens in the neotropics were also discussed. The published papers established that lichens have a rich diversity globally, they have many benefits and importance, they are widely distributed across the landscape and are found in a wide range of habitats. Many abiotic factors such as temperature, pH, humidity, moisture, latitude, topography, light availability and anthropogenic activities by human beings e.g., pollution and deforestation play a heavy influence on lichens and their distribution in the neotropics as well as globally. More studies should be done in the neotropics since data is limited and in demand. Keywords: Neotropics; Foliicolous lichen; Lichenicolous fungus; Distribution; Diversity; Factors.