PurposeLean Six Sigma (LSS) is often perceived as a foundation for implementing Industry 4.0 (I4.0) within an organization, with the two strengthening each other in different ways. The purpose of this article is to examine the evolution, trends and motivation for merging LSS and I4.0 and to gain insights into LSS 4.0 in both manufacturing and service sectors. This article also explores the effective methods for integrating and implementing LSS 4.0 in both manufacturing and service sectors, along with conducting a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of LSS 4.0.Design/methodology/approachBy conducting a systematic literature review in compliance with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, relevant literature from 2010 to 2023 was reviewed using appropriate keywords and research criteria. The objective was to identify, select and evaluate research articles related to LSS 4.0. Consequently, 159 relevant papers were located in databases, including Elsevier, Taylor and Francis Group, IEEE, Springer, Emerald Insights, Scopus and non-Scopus databases. Additionally, this review aimed to understand the progress of LSS 4.0 from the manufacturing and service sector context and to perform a SWOT analysis of LSS 4.0.FindingsThis review reveals a significant surge in the literature on LSS and I4.0 over the past three years. The research articles were categorized based on various themes, including the publisher, journals, types of articles and geographical factors such as country and continent. Additionally, the review examined the progress of LSS 4.0 in both manufacturing and service sectors. A SWOT analysis was also performed to identify the SWOT of LSS 4.0.Originality/valueThis is the first exclusive research work to conduct a SWOT analysis of LSS 4.0. This research article is highly valuable for academicians, researchers, policymakers and practitioners as it helps to identify the SWOT of LSS 4.0. Furthermore, it provides an overview of the progress of LSS 4.0 from both manufacturing and service sector perspectives, and significant case studies are discussed.