Industry 5.0 represents a paradigm in manufacturing because it has become human-centric in the utilization of the integration of advanced technologies, sustainability, and personalization. This chapter will examine some of the key aspects behind Industry 5.0, exploring how collaborative robotics, artificial intelligence (AI), and data-driven decision-making improve operational efficiency and the role of customization/personalization in production and the related commitment to sustainability through circular economy practices. Then, this chapter focuses on challenges and barriers to the implementation of Industry 5.0 and addresses the necessity of considering cybersecurity to protect smart manufacturing systems. Future trends, such as augmented reality, are discussed in demonstrating how ethical AI may be a pivotal focus of innovation and enhanced workforce engagement. Finally, the new forms of innovation and great reshaping of the manufacturing landscape indicate future opportunities and challenges associated with it.