Caffeine is one of the most commonly used stimulants among pregnant women. Human and animal studies have shown that prenatal caffeine exposure affects fetal brain development and results in persistent cognitive deficits in offspring. Studies have found that caffeine consumption during pregnancy may alter many activities that are ultimately associated with cognitive dysfunction in offspring. Despite these important findings, there is a fundamental gap in understanding the mechanism underlying cognitive impairment due to prenatal caffeine exposure. Filling this knowledge gap would provide further insights into caffeine-mediated cognitive dysfunction. The objective of this review was to evaluate the findings of studies showing that prenatal caffeine exposure induces cognitive dysfunction and the potential underlying mechanisms.