The current Bangladeshi dairy sector faces many problems related to sustainability indicators from economic, social, and environmental perspectives. In this circumstance, they must combine cutting-edge innovation to overcome growing sustainability concerns and technical revolutions to become smart farms. This study analyzes how dairy farmers might use cutting-edge technologies in their dairy sub-processes to determine the benefits of achieving additional productivity and efficiency. This paper examines precision livestock farming, information analytics, and alternative energy sources to reduce environmental hazards and increase resource efficiency. Using cutting-edge technologies like artificial intelligence (AI), machine learning (ML), robotics (RPA), Internet of Things (IoT), data analytics, system dynamics, and simulation modeling can assist the farmers in improving the results. Analyzing developing country case studies and best practices reveals crucial answers for reconciling sustainability stewardship and operational efficiency. The system dynamics method builds a simulation model and finds the projected results before implementing it in real life. The findings provide considerable waste reduction and productivity gains through technological deployments. The simulation model creates two scenarios of ‘current’ and ‘technology-adopted’ processes to examine the transformational benefits of sustainable practices. A case study method was adopted for this technology deployment to organize a comprehensive strategy that blends technology and sustainability. This study ends with recommendations for dairy farmers and policymakers to create a resilient and environmentally friendly dairy operation to secure the dairy sector’s long-term viability in transforming technologies. Future farms can follow the practical, technical, and policy, as well as recommendations to improve their processes, such as smart farm concepts available in academia and dairy-developed countries.
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