Industry 4.0, as an enabler of smart factories, focuses on flexible automation and customization of products by utilizing technologies such as the Internet of Things and cyber–physical systems. These technologies can also support the creation of virtual replicas which exhibit real-time characteristics of a physical system. These virtual replicas are commonly referred to as digital twins. With the increased adoption of digitized products, processes and services across manufacturing sectors, digital twins will play an important role throughout the entire product lifecycle. At the same time, collaborative robots have begun to make their way onto the shop floor to aid operators in completing tasks through human–robot collaboration. Therefore, the focus of this paper is to provide insights into approaches used to create digital twins of human–robot collaboration and the challenges in developing these digital twins. A review of different approaches for the creation of digital twins is presented, and the function and importance of digital twins in human–robot collaboration scenarios are described. Finally, the paper discusses the challenges of creating a digital twin, in particular the complexities of modelling the digital twin of human–robot collaboration and the exactness of the digital twin with respect to the physical system.