As the conversation shifts toward Industry 5.0 (I5.0), how prepared are manufacturing Micro Small Medium Enterprises (MSMEs) to adopt the foundational technologies of Industry 4.0 (I4.0)? Despite MSMEs’ economic importance, they persistently face challenges in adopting essential technologies and undergoing digital transformation due to financial, infrastructural, and workforce-related barriers. The extant literature provides limited understanding of their readiness to implement individual I4.0 technologies. To address this gap, this study aims to develop a Fuzzy Logic-based readiness assessment framework to evaluate adoption potential and identify weaker attributes. Using an ontological approach, the framework identifies key enablers, criteria, and attributes. Findings reveal that the case organization is “average ready”, with critical gaps in IoT, robotics, automation, and digital twin technologies. The framework provides MSMEs with a roadmap to assess their readiness and strategically plan their I4.0 transition.