Digital Twin (DT) technology has emerged as a transformative approach in manufacturing, enabling real-time synchronization between physical and virtual environments. This paper explores the implementation and use of Digital Twins, focusing on their role in predictive maintenance, factory planning, and manufacturing execution. By leveraging AI and machine learning, DTs enhance operational efficiency through real-time monitoring, simulation, and optimization. The study also examines how DTs integrate with Industry 4.0 technologies, including IoT and cloud computing, to improve decision-making and reduce downtime. Key challenges such as interoperability, data management, and scalability are discussed, along with potential solutions involving standardized frameworks and automation. Case studies from recent research highlight successful applications of DTs in industrial operations, demonstrating their impact on improving productivity and sustainability. The findings suggest that effective DT implementation requires a structured approach that combines AI-driven analytics, robust data acquisition, and predictive modeling. This research contributes to the growing body of knowledge on digital transformation in manufacturing and provides insights into the future evolution of DT technology.