This chapter explores the impact of servitization and Product-Service Systems (PSS) on the economic and environmental sustainability of manufacturing equipment. It begins with an overview of manufacturing equipment and PSS concepts, setting the stage for a discussion of sustainability challenges and their potential solutions through servitization. The chapter critically reviews the impact of smart technologies to servitization, emphasizing their implications for sustainability. Through a case study, it exemplifies how innovative technologies can address sustainability challenges in equipment service delivery. The chapter concludes by highlighting research and development trends and needs in this field, underscoring the importance of advancing sustainable manufacturing practices.