Context: Test-Driven development (TDD) is a software development approach where test cases are written before actual development of the code in iterative cycles. TDD has gained attention of many software practitioners during the last decade since it has suggested several benefits in the software development process. However, empirical evidence of its dominance in terms of internal code quality, external code quality and productivity is fairly limited. Objectives: The aim behind conducting this study is to explore what has been achieved so far in the field of Test-driven development. The study reports the benefits and limitation of TDD compared to TLD and the outcome variables in all the reported studies along with their measurement criteria. Additionally, an experiment is conducted to see the impact of Test-driven development (TDD) on internal code quality, external code quality and productivity compared to Test-Last development (TLD). Methods: In this study two research methodologies are used specifically systematic literature review according to Kitchenham guidelines and controlled pilot experiment. In systematic literature review number of article sources are considered and used, including Inspec, Compendex, ACM, IEEE Xplore, Science direct (Elsevier) and ISI web of science. A review protocol is created first to ensure the objectivity and repeatability of the whole process. Second, a controlled experiment is conducted with professional software developers to explore the assumed benefits of Test-Driven development (TDD) compared to Test-Last development (TLD). Results: 9 distinct categories related to Test-driven development (TDD) are found that are investigated and reported in the literature. All the reported experiments revealing very little or no difference in internal code quality, external code quality and productivity in Test-Driven development (TDD) over Test-Last development (TLD). However, results were found contradictory when research methods are taken into account because case studies tend to find more positive results in the favor Test-Driven development (TDD) compared to experiments possibly due to the fact that experiment are mostly conducted in artificially created software development environment and mostly with students as a test subjects. On the other hand, experimental results and statistical analysis show no statistically significant result in the favor TDD compared to TLD. All the values found related to number of acceptance test cases passed (Mann-Whitney U test Exact Sig. 0.185), McCabe’s Cyclomatic complexity (Mann-Whitney U test Exact Sig. 0.063), Branch coverage (Mann-Whitney U test Exact Sig. 0.212), Productivity in terms of number of lines of code per person hours (Independent sample Ttest Sig. 0.686), productivity in terms number of user stories implemented per person hours (Independent sample T-test Sig. 0.835) in experiment are statistically insignificant. However, static code analysis (Independent sample T-test Sig. 0.03) result was found statistically significant but due to the low statistical power of test it was not possible to reject the null hypothesis. The results of the survey revealed that the majority of developers in the experiment prefer TLD over TDD, given the lesser required level of learning curve as well as the minimum effort needed to understand and employ TLD compared to TDD Conclusion: Systematic literature review confirms that the reported benefits of TDD development compared to Test-Last development are very small. However, case studies tend to find more positive results in the favor of Test-Driven development (TDD) compared to Test-Last development (TLD). Similarly, experimental findings are also confirming the fact that TDD has small benefits over TLD. However, given the small effect size there is an indication that (Test-Driven development) TDD endorses less complex code compared to Test-Last development (TLD). / Systematic literature review confirms that the reported benefits of TDD development compared to Test-Last development are very small. However, case studies tend to find more positive results in the favor of Test-Driven development (TDD) compared to Test-Last development (TLD). Similarly, experimental findings are also confirming the fact that TDD has small benefits over TLD. However, given the small effect size there is an indication that (Test-Driven development) TDD endorses less complex code compared to Test-Last development (TLD). / hassanmunirr@hotmail.com, mm1844@gmail.com