Twitter is a well-known Web 2.0 microblogging social networking site that is quite popular for organizing events and sharing updates. It provides just in time communication, social connectivity and immediate feedback through Web, smartphones, tablet PCs, etc. The use of Twitter has also attracted educators and researchers due to its growing popularity among students, teachers, and academic communities as a whole. This study provides a critical review of Twitter use in educational settings. By practicing a systematic research methodology in the selection and review of literature, different pedagogical and instructional benefits and drawbacks of Twitter use in education were discussed. Based on these discussions, it was discovered that Twitter has positive impact on informal learning, class dynamics, motivation, as well as the academic and psychological development of young students. However, the potential long-term impact of Twitter on academic performance of students and its long-term effect on learning is still worth investigating.