Abstract
This paper explores the educational demands on engineering graduates as the industry shifts from Industry 4.0 (I4.0) to Industry 5.0 (I5.0). It examines the integration of Learning Factories (LFs) in higher education, which provide hands-on learning in simulated industrial environments. Through a systematic literature review and empirical research, the study develops a framework highlighting key factors for effective learning: pedagogy, learning spaces, and technology. These elements enhance student readiness for I4.0 and I5.0 by fostering crucial skills like problem-solving and collaboration. Findings indicate that LFs help bridge the gap between theory and practice. The study offers recommendations for Higher Education Institutions (HEIs) to create immersive learning environments that address skill gaps and support sustainable, inclusive futures aligned with I5.0 ideals.