The latest shift in the industry, known as industry 4.0, has introduced new challenges in manufacturing. The main characteristic of this transformation is digital technologies' effect on the way production processes occur. Due to the technological growth, knowledge and skills on manufacturing operations are becoming obsolete. Hence, the need for upskilling and reskilling individuals urges. In collaboration with other key entities, educational institutions are responsible for raising awareness and interest of young students to reach a qualified and equal workforce. Drawing on a thorough literature review focused on key empirical studies on learning factories and fundamental industry 4.0 concepts, trends, teaching approaches, and required skills, the goal of this paper is to provide a gateway to understand effective learning factories’ approaches and a holistic understanding of the role of advanced and collaborative learning practices in the so-called education 4.0.