The fast development of digital technologies through Industry 4.0 requires a complete shift in mechanical engineering education which needs to move past conventional classroom instruction methods. The study offers a complete evaluation of how digital technologies influence curriculum development and teaching methods and learning activities in this domain. The research establishes three distinct categories for these technologies through a structured literature review which includes conventional tools such as CAD/CAE and simulation software and advanced tools like Digital Twins and VR/AR and cloud computing and emerging AI-based technologies including machine learning and generative AI. The study shows three main advantages which include active learning and interactive methods and virtual spaces that provide safety and cost reduction and educational content that matches current workplace needs. The study examines major obstacles which prevent broad implementation because of expensive deployment costs and inadequate school facilities and untrained teachers and opposition to new teaching approaches. The authors present a complete overview through real-world examples which functions as a strategic resource for educational institutions to apply these technologies in building future-ready mechanical engineering education. The paper establishes that organizations need to adopt a complete strategic framework for successful implementation because these technologies will achieve their full potential when institutions actively solve major financial and infrastructural and educational challenges.