Proponents of agile methods claim that enabling, fostering and driving creativity is the key motivation that differentiates agile methods from their more traditional, beauraucratic counterparts. However, there is very little rigorous research to support this claim. Like most of their predecessors, the development and promotion of these methods has been almost entirely driven by practitioners and consultants, with little objective validation from the research community. This lack of validation is particularly relevant for SMEs, given that many of their project teams typify the environment to which agile methods are most suited i.e. small, co-located teams with diverse, blended skills in unstructured, sometimes even chaotic surroundings. This paper uses creativity theory as a lens to review the current agile method literature to understand exactly how much we know about the extent to which creativity actually occurs in these agile environments. The study reveals many gaps and conflict of opinion in the body of knowledge in its current state and identifies many avenues for further research.