This review is conducted to describe how children who are deaf or hard of hearing (D/HH) interact with hearing peers in inclusive settings, illustrate the difficulties and challenges faced by them in interacting with peers, and identify effective interventions that promote their social interaction in inclusive education. A systematic search of databases and journals identified 21 papers that met the inclusion criteria. Two broad themes emerged from an analysis of the literatures, which included processes and outcomes of interactions with peers and intervention programs. The research indicates that children who are D/HH face great difficulties in communicating, initiating/entering, and maintaining interactions with hearing peers in inclusive settings. The co-enrollment and social skills training programs are considered to be effective interventions for their social interaction. Communication abilities and social skills of children who are D/HH, responses of children with normal hearing, and the effect of environment are highlighted as crucial aspects of social interactions. In addition, future research is needed to study the interaction between children who are D/HH and hearing peers in natural settings, at different stages of school life, as well as improving social interaction and establishing an inclusive classroom climate for children who are D/HH.