Product engineering involves the design and development of new products or the improvement of existing products to efficiently meet market needs and ensure high quality. In this, the implementation of Design for Excellence (DfX) concepts (namely Design for Manufacturing, Design for Assembly, Design for Reliability, Design for User Experience, Design for Testability, and Design for Security) is essential to enhance manufacturability, ease of assembly, and serviceability, thereby improving overall product performance and user experience. However, growing concerns about the global environment and climate changes, resource depletion, pollution, and dynamic user requirements limit the fruitfulness of product engineering. This necessitates the integration of sustainability principles with the traditional DfX concepts as it is emerging as a significant factor for businesses and government policies worldwide. By implementing sustainability practices, businesses can create innovative and marketable products that minimize environmental impact while meeting consumer demands. In this view, this paper discusses a new approach called “Design for Sustainability (DfS)” in product engineering that focuses on developing sustainable products. The paper discusses various steps involved in implementing DfS (such as material selection, modular design principles, alternative energy sources, serviceable products, circular economy, long service life, transportation impact, and simulation) in the product engineering process and also highlights its importance and benefits. All these steps contribute to responsible resource use, waste management, and emission reduction, and lessen the social and economic impacts.