Industry 5.0 (I5.0) represents a new industrial revolution where humans, sustainability, and resilience sit at the heart of industrial production. Moving toward I5.0, however, requires a deeper understanding of the challenges involved and how to overcome them, yet a comprehensive investigation in this regard is lacking. Focusing on this gap, this study explores and assesses the challenges and strategies associated with implementing I5.0 to enhance sustainability in the footwear manufacturing industry. In doing so, the study identifies challenges and strategies for the successful implementation of I5.0, drawing on insights from both a literature review and interviews with industry professionals. The challenges and strategies were subsequently systematically evaluated using a combined Best‐Worst Method and Fuzzy VIKOR approach based on further data from specialists in Bangladesh's footwear industry. The results point out that the most significant challenges are related to the failure to achieve real‐time connection between physical production and digital factory, lack of collaboration between human talent and IT resources, and higher management's lack of vision and leadership. The findings also uncover corresponding strategies that could help manufacturers and policymakers to navigate these challenges and facilitate the implementation of I5.0. Furthermore, the study suggests five clusters of mitigation strategies for guiding I5.0 implementation in the footwear industry with the purpose of sustaining this industry in the long run.