Thought experiments have been used as an effective methodological approach to advance theory in numerous scientific fields. However, they are underutilized in organizational behavior (OB) and adjacent fields. Accordingly, we conducted a comprehensive and multidisciplinary literature review of thought experiments that entailed 174 sources in economics, psychology, marketing, medicine, sociology, finance, and other fields. We leveraged insights from this literature review to define and describe the unique nature of thought experiments and offer a taxonomy of four main types based on a theory’s development stage (i.e., early vs. late) and a study’s theoretical goal (i.e., confirmation vs. disconfirmation). We also provide a decision-making tree useful for evaluating whether conducting a thought experiment is beneficial for a particular research situation and which of the four types is most likely to produce a meaningful contribution. Then, we offer best-practice recommendations for conducting thought experiments that address how to plan, execute, report results, and discuss implications. In addition, we demonstrate the potential of thought experiments by using the best-practice recommendations to design and conduct a thought experiment in the domain of workplace allyship. Finally, we offer suggestions for future substantive research that would benefit from thought experiment methodology (e.g., diversity and inclusion, leadership, performance, selection and recruitment, teams, and turnover). Overall, our article offers a comprehensive review and recommendations that we hope will be a catalyst for using thought experiments to advance theory in OB and related fields.