Conventional agricultural practices result in negative impacts on the soil, water, and environment due to over and imprecise application of farm inputs. Managing the small farm holdings as a homogeneous block was considered as a kind of precision agriculture; however, field studies established the existence of spatial and temporal variation in soil and plant properties which can be further managed to optimize the yield potential. Precision agriculture (PAg) comprises information, technologies, and a management strategy to maximize the yield potential with optimized farm inputs in a sustainable way. Except for Brazil, PAg in most of the developing countries is in the nascent stage due to different adoption and implementation issues. It may be seen from the recent developments that recommendations regarding irrigation scheduling, fertilizer application, and pesticide application are gaining popularity in India, and these must be wholly assisted with field-level technologies like advanced farm equipment suitable for small and marginal farmers. Custom hiring and Farming as a Service (FaaS) are possible ways to demonstrate, implement and sustain the advantages of the PAg in the longer run. This paper addresses the status, constraints, and future prospects of PAg in developing countries. The use of drones in India got a boost due to the supportive government policy and several startups are offering services in mapping the farm field for plant growth monitoring and pesticide application. PAg technologies, popular in developed countries, may not be a solution because developing countries have their inherent constraints of low capital, fragmented and small field size, education level of farmers, and immediate benefits of the technology. Precision agriculture with the newly evolving cyber-physical systems (CPS) can transform conventional agricultural systems into sustainable farming.