The integration of Digital Twin technology in small and medium‐sized enterprises (SMEs) has brought forth a transformative paradigm in engineering practices. This paper presents a comprehensive overview of the use of Digital Twin in SMEs and its implementation of advanced digital technologies in an engineering context. The paper highlights key benefits, such as the ability to simulate, analyze, and predict the behavior of products or processes before their physical instantiation. By leveraging advanced modeling and simulation techniques, SMEs can efficiently explore multiple design iterations, identify potential issues, and optimize engineering solutions without costly physical prototyping. Furthermore, the paper discusses integrating other advanced digital technologies, such as the Internet of Things (IoT) and Artificial Intelligence (AI), with Digital Twin to create intelligent and interconnected systems. The implementation of Digital Twin technology in SMEs extends beyond product design to encompass various aspects of the product lifecycle, fostering efficiency, accuracy, and innovation. However, challenges such as data integration, cybersecurity, and skill requirements are addressed. With proper planning and investment, SMEs can unlock the full potential of Digital Twin technology to gain a competitive edge in the dynamic engineering domain. In conclusion, this paper demonstrates that the use of Digital Twin in SMEs and its integration with advanced digital technologies revolutionizes engineering practices. By offering virtual representations of physical assets and processes, Digital Twin enables SMEs to make informed decisions, optimize performance, and drive innovation. As the technology evolves, it becomes an indispensable tool for SMEs seeking to thrive in the ever‐evolving engineering landscape.