Background Systemic testosterone therapy is increasingly prescribed to peri- and postmenopausal women, often for symptoms beyond its established indication. While testosterone is evidence-based for hypoactive sexual desire disorder (HSDD), its role in vasomotor symptoms (VMS) and other menopausal domains remains unclear, contributing to a gap between evidence and clinical practice. Objective To evaluate the efficacy and safety of systemic testosterone therapy for vasomotor symptoms and other menopausal outcomes in peri- and postmenopausal women using randomised controlled trial (RCT) evidence. Search Strategy MEDLINE, Embase, and Cochrane CENTRAL were searched from January 1995 to November 2025, supplemented by trial registries and citation tracking. Selection Criteria Double-blind RCTs of ≥12 weeks duration evaluating systemic testosterone (oral, transdermal, injectable, or implant) in peri- or postmenopausal women, compared with placebo or active hormonal comparators, were included. Data Collection and Analysis Two reviewers independently screened studies, extracted data, and assessed risk of bias. Random-effects meta-analyses were performed where appropriate. Certainty of evidence was assessed using GRADE. This review was conducted in accordance with PRISMA 2020 and prospectively registered with PROSPERO (CRD420251170997). Main Results Forty studies (36 RCTs; 8,480 women) were included. Testosterone showed no benefit for vasomotor symptoms (pooled MD 0.01, 95% CI −0.08 to 0.10), regardless of formulation, menopausal type, or estrogen use. In contrast, testosterone significantly improved sexual function in postmenopausal women with HSDD, increasing satisfying sexual events (MD +0.85 per 28 days, 95% CI 0.52–1.18) and reducing sexual distress. Effects on mood, cognition, bone, and physical function were neutral or inconsistent at physiological doses. Non-oral formulations demonstrated a favorable cardiometabolic safety profile, with mild, reversible androgenic effects. Conclusions Systemic testosterone should not be used to treat vasomotor symptoms but is an effective, evidence-based therapy for postmenopausal HSDD. Guideline-aligned, indication-specific prescribing is essential, and off-label use for unproven menopausal symptoms should be discouraged.