Industry 4.0 has immensely influenced the educational system in this era. By the advent of new technologies in the industry 4.0 including IOT, AI, and Big data has contributed to the learning process in educational institution. Technologies has ease and break the barriers of the learning process . A new culture of learning independently is starting to emerge as materials are very easily to be accessed. However, on the other side human employment are starting to diminish as works are being automated by robots. This creates a challenge for educational institution to offer a promising future for graduates. Inevitably, educational institution must continually adapt to the changes. Students must be prepared with the neccessary skills to face the challenges in the industry 4.0. The required skills include critical thinking, creativity, problem solving, people managment, emotional intelligence, cognitive flexibility and coordination with others. These skills can be formed to students through a framework of enhancement of student activity, curicullum development, and laboratory work.Therefore, this paper aim to explore the student skill required for facing industry 4.0 method for preparation and how to achive and the challanges for geting the skill are presented.