The construction industry is a key sector in any economy. Worldwide the sector contributes to the gross domestic product (GDP) and provides employment, yet it encounters many impediments that work against its success. The construction of buildings is a major consumer of energy and natural resources and can negatively affect the environment if the process is not properly managed. Stakeholders in the construction industry have diverse interests which compete against each other and inhibit the achievement of project objectives. The objective of the study was to review existing theoretical and empirical literature on the effect of stakeholder engagement on sustainable construction of building projects. The study reviewed relevant underlying theories and empirical research. The stakeholder theory was identified as key, however, other relevant theories reviewed are contingency theory, systems theory, and sustainable concept. Empirically, a six-step process of stakeholder management was contemplated and the key stakeholders linked with sustainability principles. The key elements of sustainable construction and sustainable performance of construction projects during project life cycle phases was also discussed. These studies address each element independently in detail but fail to provide a link if any between stakeholder management and performance of sustainable construction projects. The sustainability requirements are applicable to all the project lifecycle phases and the stakeholders should participate in all these phases to execute a sustainable building. The findings of the study confirm that there is need to study an empirical model to determine the role of stakeholders in sustainable construction of building projects.