Additive manufacturing (AM) with Internet of Things (IoT) has enhanced the efficiency of AM systems for industry 4.0 framework. The objective of the current work is to critically review the vitality of application of IoT in AM applications. This literature review explores automated AM processes, their characteristics, and sustainability, identifying key applications for printing smart materials that react real time to environmental changes. Intelligent designs can be created using adaptable materials like tissue rings for human organ replicas. While AM cannot completely replace traditional processes, IoT can expand fast prototyping capabilities, enabling personalized goods on demand. IoT-enabled AM can gradually replace manual operations, reducing human intervention and errors. Artificial intelligence and machine learning improve surface polish and production flaws in AM. IoT-enabled AM enhances supply chain operations, reduces unnecessary material input, and facilitates on-demand manufacture, promoting lean, efficient, and sustainable production. IoT advances AM technologies, including human augmentation, digital twins, 3D bioprinting, 3D scanning, and parameter optimization, enabling easier input identification and specification in 3D printing processes.