Display omitted •Extensive review of reconfigurable manufacturing systems (RMSs) from 1999 to 2017.•Proposal of a schematic outlining five research streams of major interest.•Discussion of major features of RMSs with models and methods to address them.•Integration of reconfigurability concept to Industry 4.0 principles.•Proposal of open questions to encourage future research. The current manufacturing environment aims at getting an increasing variety of customised, high-quality products in flexible batches. The dynamic market demand, the short product lifecycle and the flexibility need mark the transition from the traditional manufacturing systems to the so-called Next Generation Manufacturing Systems (NGMSs). Reconfigurable Manufacturing Systems (RMSs) are within NGMSs and seem to match to these current market trends. RMSs allow rapid change in structure, hardware and software configuration to adjust, promptly, their production capacity and functionality. This paper presents a structured and updated systematic review of the literature about RMSs, highlighting the application areas as well as the key methodologies and tools. The review further provides a schematic of RMS research, identifying five emerging and promising research streams ranging from conceptual models to empirical applications. Compared to previous reviews, focusing on specific aspects of the RMS design and management, this study covers multiple areas and topics and it links reconfigurable manufacturing to the upcoming Industry 4.0 fourth industrial revolution. Finally, important issues and new trends in the literature are outlined to stimulate researchers and practitioners in developing studies in this field strongly linked to the Industry 4.0 environment.