The evolution of industrial processes over the past century has seen significant changes in the manufacturing domain, from Industry 1.0, which focused on steam engines and mechanization, to Industry 4.0, which transitioned into data-powered automation focused on efficiency and high productivity. However, as an industry heavily focused on the automation of production processes, Industry 4.0 faces major concerns about technology-induced human unemployment, ethical use of artificial intelligence, and higher rates of environmental exploitation. This chapter discusses the transition to Industry 5.0, which intends to re-establish human involvement in industrial processes, with increased emphasis on sustainability and mindful production methods. This chapter is a theoretical literature review that envisages Industry 5.0 as a human-centric approach with increased collaboration between humans and machines. It is also evident from this study that Industry 5.0 provides better solutions to the limitations of Industry 4.0 by incorporating contemporary technological tools such as cobots, digital twins, and data empowerment. This inclusion of contemporary technology helps in attaining customized, sustainable production methods that align with global initiatives on sustainability. Following this approach of increased collaboration between humans and machines also guarantees a sustainable future for the manufacturing industry as it focuses on enhancing human skills and operations with the help of technology instead of replacing them.