In recent years, the rapid advancement of digital technologies has driven a profound transformation in both individual lives and business operations. The integration of Industry 4.0 with advanced mechatronic systems is at the forefront of this digital transformation, reshaping the landscape of smart manufacturing. This article explores the convergence of digital technologies and physical systems, with a focus on the critical role of mechatronics in enabling this transformation. Using technologies such as advanced robotics, the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, industries are developing intelligent and interconnected systems capable of real-time data exchange, distributed decision making, and automation. The paper further explores two case studies: one on a smart plastic injection moulding machine and another on soft robots. These examples illustrate the synergies, benefits, challenges, and future potential of integrating mechatronics with Industry 4.0 technologies. Ultimately, this convergence fosters the development of smart factories and products, enhancing manufacturing efficiency, adaptability, and productivity, while also contributing to sustainability by reducing waste, optimising resource usage, and lowering the environmental impact of industrial production. This marks a significant shift in industrial production towards more sustainable practices.