To understand the phenomenon of entrepreneurship, it is necessary to pay attention to the cultural dynamics involved in the entrepreneurial process, such as the self-identity construction of new ventures and the acquisition of organizational legitimacy. The cultural entrepreneurship theory emerged in this context. It helps entrepreneurs mobilize activities through storytelling and other means to gain legitimacy before organizing tangible entrepreneurial resources. As an emerging entrepreneurial theory, the cultural entrepreneurship theory system needs to be sorted and summarized in stages. Therefore, this paper provides a detailed analysis from four aspects: defining core concepts and comparing relevant theories, theoretical mechanisms, theoretical analysis methods, and theoretical research boundaries.The results indicate that although the cultural entrepreneurship theory has not been established for a long time, it has formed a relatively stable core concept and theoretical framework, and has made certain contributions to entrepreneurship research in strategic and organizational fields by integrating cultural and organizational identity methods from economics, management, sociology, and anthropology, making significant progress. However, there are still problems and shortcomings in the research content, research methods, and research boundaries, which need further improvement. Therefore, we have pointed out targeted future research directions. This can play a positive role in promoting the development and improvement of cultural entrepreneurship theory and its application in the Chinese context.