<p>Sudden challenges have arisen in manufacturing from the last few years. These changes destroyed the traditional manufacturing system. High automation was introduced in the industry by connecting physical and virtual world, known as Industry 4.0. Since Industry 4.0 was unable to meet the emergent need for customization, the term Industry 5.0 was developed to address the customised manufacturing. It seeks to achieve social goals beyond employment and growth by centring human well-being in industrial systems, thus providing robust prosperity for a sustainable future for all humanity. This industry revaluation enhanced the customer satisfaction by creating their customised products. The primary goal of industrial transformation is to take into account the social and environmental advantages of the sector in order to become a true source of success. In order to achieve maximum efficiency with maximum profit, this innovative method will improve the wealth of all stakeholders, including investors, employers, consumers, society, and the environment. This paper aims to categorise and summarise the research results from some papers on Industry 5.0 and key challenges of Industry 4.0 in order to provide guidance and insight to other researchers and professionals. In order to achieve SDG 9: Industry, Innovation, and Infrastructure, new cutting-edge technologies must be adopted in a sustainable manner. The flexibility and efficiency of industry production were enhanced by advanced technologies. The study demonstrates how incorporating cutting-edge digital technologies like artificial intelligence (AI), the Internet of Things (IoT), collaborative robotics (cobots), and cyber-physical systems (CPS) into agile approaches improves manufacturing’s flexibility, responsiveness, and customisation. The results show that agile manufacturing in Industry 5.0 promotes productivity, sustainability, and mass customisation while improving worker-machine cooperation.</p>