The egg is considered one of the best sources of dietary protein, and has an important role in human growth and development. With the increase in the world's population, per capita egg consumption is also increasing. Ground‐breaking technological developments have led to numerous inventions like the Internet of Things (IoT), various optical sensors, robotics, artificial intelligence (AI), big data, and cloud computing, transforming the conventional industry into a smart and sustainable egg industry, also known as Egg Industry 4.0 (EI 4.0). The EI 4.0 concept has the potential to improve automation, enhance biosecurity, promote the safeguarding of animal welfare, increase intelligent grading and quality inspection, and increase efficiency. For a sustainable Industry 4.0 transformation, it is important to analyze available technologies, the latest research, existing limitations, and prospects. This review examines the existing non‐destructive optical sensing technologies for the egg industry. It provides information and insights on the different components of EI 4.0, including emerging EI 4.0 technologies for egg production, quality inspection, and grading. Furthermore, drawbacks of current EI 4.0 technologies, potential workarounds, and future trends were critically analyzed. This review can help policymakers, industrialists, and academicians to better understand the integration of non‐destructive technologies and automation. This integration has the potential to increase productivity, improve quality control, and optimize resource management toward sustainable development of the egg industry.