The transition to Industry 5.0 (I5.0) represents a significant shift from the automation-driven Industry 4.0 (I4.0) to a human-centric approach that emphasizes personalization, sustainability, and collaboration between humans and machines. This paper explores how I5.0, through its focus on personalization, enables sustainable business practices. Drawing on data from 125 enterprises, the study employs mediation analysis to examine the relationships between I5.0, personalization, and sustainability. The findings reveal that personalization acts as a critical mediator, enhancing the positive impact of I5.0 on sustainability by reducing overproduction and waste. The study concludes with strategic recommendations for businesses aiming to leverage I5.0 for sustainable growth, emphasizing the importance of adopting advanced technologies like AI, IoT, and additive manufacturing to create customized, sustainable products. By integrating personalization into their operations, companies can achieve both economic and environmental sustainability, meeting the demands of a rapidly changing market while addressing global challenges such as resource depletion and climate change.