As human ingenuity and innovative technologies become more integrated, such as AI, robotics, neural networks, deep learning, and the IoT, Industry 5.0 heralds a revolutionary change in the engineering and manufacturing sectors. Industry 5.0 promotes a human-centric strategy that puts customization and sustainability first, in contrast to Industry 4.0, which was largely focused on automation and data interchange. This new paradigm aims to produce solutions that are more ecologically conscious and more individualized by utilizing the combination between human creativity and machine efficiency. The project explores the complex interplay between Industry 5.0 and sustainability, focusing on how improved human–machine collaboration might result in resource efficiency, lower energy usage, and less environmental impact. It also explores the social ramifications of this industrial revolution, especially as they relate to workforce development and job enrichment. Industry 5.0 has the potential to address urgent global issues like resource depletion and climate change by incorporating sustainability into the foundation of industrial processes. With regard to integrating sustainability as a fundamental component of the Industry 5.0 framework, the study seeks to outline the advantages, obstacles, and future directions. The study outlines the main benefits—such as increased productivity and a smaller environmental footprint—through case studies and critical analysis, but it also acknowledges its drawbacks and future difficulties, such as the need for future developments in technology, legal frameworks, and moral principles. In summary, the findings highlight Industry 5.0’s considerable potential to support worldwide sustainability initiatives, and they also highlight the significance of tackling the ethical, legal, and technological challenges required to build an equitable and sustainable industrial future progression.