Cross-laminated timber (CLT) has been widely discussed as a relevant industrialized construction solution. Numerous publications have considered CLT as a structural wood-based panel, but other documents have mentioned it as a building or even a construction system. Many authors address its application in multistory buildings, although single-family houses and lower building applications have become desirable topics as well. Given these gaps, this review study addresses a systematic method to evince the functions of cross-laminated timber in construction. The elucidation and discussion were led by technical and scientific contents through publications present in scientific websites and the Google web search engine. Intricate perceptions about the knowledge and reference of CLT functions were identified. From prospections, it was possible to state that CLT is a timber-forest product created in Europe, whose function acts as a structural composite panel of the engineered wood product category. However, CLT has been mentioned by many publications as a building or a construction system. Suggestions were raised to clarify to all readers with respect to misconceptions, and elucidate the construction systems capable of using it as the main resource. Discussions evinced the characteristics and potentials of this wood product. Even with its increasing application in tall buildings, the commercial application of CLT in low-rise buildings may be boosted by the possibility of large-scale production of industrialized houses.