As an interdisciplinary science and engineering paradigm, Mechatronics synergizes diverse engineering and non-engineering disciplines to inspire new ideas, accelerate innovation, and create integrated solutions for complex technological challenges in modern industry and daily life. This paper highlights the critical role of mechatronics in both Industry 4.0 and Industry 5.0, focusing on smart manufacturing systems, sustainable development, and human-machine collaboration. It highlights and discusses significant advancements, including autonomous systems, renewable energy integration, and bioinspired designs, demonstrating notable improvements in efficiency, adaptability, reliability, and interdisciplinary collaboration, reflecting the transformative potential of mechatronics. Practical applications such as AI-driven collaborative robots (Cobots), predictive maintenance systems, and cyber-physical architectures in manufacturing environments illustrate the real-world impact of these innovations. These innovations support more sustainable and efficient operations while reshaping industrial practices. The paper critically evaluates ongoing challenges, including the scalability of autonomous systems, limitations in human-centric technology development, and the integration of sustainability metrics into mechatronic systems. It proposes strategic pathways to address these issues, emphasizing enhanced real-time intelligent decision-making, modular system design, and advanced AI applications. Future opportunities in sustainable technological development are highlighted, driven by breakthroughs in AI, robotics, and smart materials. Guided by the mechatronics philosophy of integrated thinking and planning, this paper outlines a roadmap for future innovations. It also highlights the emergence of Eco-mechatronics, an evolution of mechatronics that prioritizes environmental sustainability alongside technological advancement. By integrating Eco-conscious practices with cutting-edge engineering, Eco-Mechatronics presents a transformative approach to addressing global challenges, shaping a more efficient, eco-friendly industrial landscape, fostering sustainable industrial ecosystems, and significantly enhancing human quality of life.