Presently, digitalization is causing continuous transformation of industrial processes. However, it does pose challenges like spatially contextualizing data from industrial processes. There are various methods for calculating and delivering real-time location data. Indoor positioning systems (IPS) are one such method, used to locate objects and people within buildings. They have the potential to improve digital industrial processes, but they are currently underutilized. In addition, augmented reality (AR) is a critical technology in today’s digital industrial transformation. This article aims to investigate the use of IPS and AR in manufacturing, the methodologies and technologies employed, the issues and limitations encountered, and identify future research opportunities. This study concludes that, while there have been many studies on IPS and navigation AR, there has been a dearth of research efforts in combining the two. Furthermore, because controlled environments may not expose users to the practical issues they may face, more research in a real-world manufacturing environment is required to produce more reliable and sustainable results.