In August 2010, concerns were raised about an increase in the incidence rate of narcolepsy diagnosis in children and adolescents. Narcolepsy is a chronic neurological sleep disorder characterised by excessive daytime sleepiness and attacks of muscle weakness which are often precipitated by strong emotions, known as cataplexy. We systematically examined and updated the scientific literature on the consequences of narcolepsy on cognitive function and psychosocial well-being in school-age children. Eight studies published between 2005 and 2015 were eligible for inclusion in this review. Collectively the results provide evidence to suggest that children who develop narcolepsy are at significant risk of cognitive impairment in at least one domain and emotional problems including depression, anxiety and low self-esteem. Children with narcolepsy should be monitored carefully in order to manage and reduce the impact of any impairments present. The existing literature is limited by small sample sizes, lack of appropriate controls and lack of longitudinal data. Future research should aim to address the limitations of the current work and aim to determine the underlying cause of cognitive and psychological impairments. This will enable the design of effective interventions to support children with narcolepsy so that they are able to achieve their full potential.