This paper introduces an Acoustic Emission (AE)-based monitoring method designed for supervising the Abrasive Waterjet Cutting (AWJC) process, with a specific focus on the precision cutting of Carbon Fiber-Reinforced Polymer (CFRP). In industries dealing with complex CFRP components, like the aerospace, automotive, or medical sectors, preventing cutting system malfunctions is very important. This proposed monitoring method addresses issues such as reductions or interruptions in the abrasive flow rate, the clogging of the cutting head with abrasive particles, the wear of cutting system components, and drops in the water pressure. Mathematical regression models were developed to predict the root mean square of the AE signal. The signal characteristics are determined, considering key cutting parameters like the water pressure, abrasive mass flow rate, feed rate, and material thickness. Monitoring is conducted at both the cutting head and on the CFRP workpiece. The efficacy of the proposed monitoring method was validated through experimental tests, confirming its utility in maintaining precision and operational integrity in AWJC processes applied to CFRP materials. Integrating the proposed monitoring technique within the framework of digitalization and Industry 4.0/5.0 establishes the basis for advanced technologies such as Sensor Integration, Data Analytics and AI, Digital Twin Technology, Cloud and Edge Computing, MES and ERP Integration, and Human-Machine Interface. This integration enhances operational efficiency, quality control, and predictive maintenance in the AWJC process.