The climate crisis demands an energy transition away from fossil fuels, and for the transport sector, this implies finding more electric or hydrogen-fuelled solutions. An emerging disruptive solution with high potential for improved sustainability is using drones as a mode of transport, i.e., Advanced Air Mobility for passenger and freight transport in urban and rural areas,fuelled by electricity or green hydrogen. As drones are being rapidly commercialized, there is a need for a policy framework for local and regional actors to address this in decision-making. This paper aims to develop a policy framework through a systematic literature review where findings have been validated by experts from industry and appropriate governance bodies. The results reveal three conceptual elements in the Advanced Air Mobility system where policy actions are needed: 1) primary tech-nology, including vehicle-related aspects; 2) functionality, including infrastructure and operations; and 3) adoption, including the environment, market, and society. The overall lack of a multi-level governance model for Advanced Air Mobility and the scarcity of knowledge of the topic within vital fields such as energy systems and regional planning are also addressed. The findings are discussed in light of regulatory frameworks for drone transportation in Europe. The paper concludes with a policy development framework for regional Advanced Air Mobility deployment and provides policy implications.