Globalization has led to the transformation of industries, enabling them to provide the services to customers irrespective of the physical location. Industries moved from 3.0 to 4.0 where automation is one of the key issues that needs to be handled by all sectors. The current market has gradually started focusing on intelligent products which in turn forced industries to transform from regular traditional production to intelligent production. In manufacturing Industries, autonomous systems gain more weightage than earlier methodology. Industry 4.0 focused on new technologies like Internet of Things, cyber-physical system (CPS), and big data analytics. These advancements in the manufacturing industry have carved a path for a systematic deployment of CPS. In this chapter, authors discuss the theoretical background of evolution in Industry 4.0, structure and characteristics of CPS, implementation of CPS in Industries, and associated issues and challenges.