In recent years, the construction industry has been undergoing a remarkable transformation with the integration of cutting-edge technologies. One of the important trends in this domain is the emergence of human–robot collaboration (HRC), which has the potential to redefine the traditional standards of construction project execution. Construction automation using emerging technologies such as robots, unmanned aerial systems (UAS), sensors, virtual reality (VR), and augmented reality (AR) has improved the efficiency of construction processes. Strenuous and repetitive construction activities can be carried out by robots thereby improving productivity, enhancing safety and quality, and addressing workforce shortages. Through a literature review, this study discusses the applications, benefits, and challenges of HRC in the construction industry. Key application areas include material handling and transportation, demolition and deconstruction, prefabrication, quality control, site surveying, and site monitoring. The main challenges encountered in HRC include technological barriers, integration with existing workflows, workforce considerations, and cost. Emerging technologies such as advanced robotics, artificial intelligence (AI), wearable devices, and Internet of Things (IoT) integration will reform the construction industry. These technologies enable robots to possess higher levels of autonomy, interact more seamlessly with humans, and collaborate more effectively. As construction processes evolve, understanding the intricacies of HRC applications and their trajectory within the industry becomes critical for stakeholders aiming to enhance productivity, safety, and overall project outcomes.