The advent of Industry 4.0 has revolutionized manufacturing and industrial processes worldwide, leveraging technologies such as automation, big data, and the Internet of Things (IoT). The evolution toward Industry 5.0 represents a paradigm shift, emphasizing human–machine collaboration aa well as socio-technical systems. This research paper explores the transition from Industry 4.0 to Industry 5.0 within the context of the Mauritian industrial landscape. Through a comprehensive study of the country’s economic, technological, and social factors, this study examines the readiness and potential challenges and opportunities for embracing Industry 5.0 principles. Findings reveal the current state of Industry 4.0 adoption in Mauritius. Identifying barriers such as limited technological infrastructure, workforce skills gap, and financial constraints. Furthermore, it identifies key strategies and recommendations for Mauritius to harness the benefits of Industry 5.0, while addressing the related socio-economic implications. This includes increased agility, customization, and sustainability. Recommendations are provided for policymakers, industry stakeholders, and academia to facilitate the transition toward Industry 5.0, thereby enhancing the competitiveness and resilience of Mauritian industries in the global market. The shift to Industry 5.0 in Mauritius involves addressing unique challenges and leveraging specific opportunities.