In the era of advancement in information technology and the smart healthcare industry 5.0, the diagnosis of human diseases is still a challenging task. The accurate prediction of human diseases, especially deadly cancer diseases in the smart healthcare industry 5.0, is of utmost importance for human wellbeing. In recent years, the global Internet of Medical Things (IoMT) industry has evolved at a dizzying pace, from a small wristwatch to a big aircraft. With this advancement in the healthcare industry, there also rises the issue of data privacy. To ensure the privacy of patients’ data and fast data transmission, federated deep extreme learning entangled with the edge computing approach is considered in this proposed intelligent system for the diagnosis of lung disease. Federated deep extreme machine learning is applied for the prediction of lung disease in the proposed intelligent system. Furthermore, to strengthen the proposed model, a fused weighted deep extreme machine learning methodology is adopted for better prediction of lung disease. The MATLAB 2020a tool is used for simulation and results. The proposed fused weighted federated deep extreme machine learning model is used for the validation of the best prediction of cancer disease in the smart healthcare industry 5.0. The result of the proposed fused weighted federated deep extreme machine learning approach achieved 97.2%, which is better than the state-of-the-art published methods.