In recent years, the emergence of advanced information technology and artificial intelligence has significantly advanced the construction industry, leading to a new era characterized by intelligent construction. Prefabricated buildings, distinguished by their standard components, have emerged as a crucial factor in this evolution, demonstrating rapid growth. Intelligent construction embodies a groundbreaking methodology integrating advanced information technology with engineering construction techniques. An essential technical challenge involves efficiently integrating the ‘physical’ and ‘digital’ domains within prefabricated structures. This paper explores the integration of digital twin (DT) technology within the intelligent construction of prefabricated buildings. DTs offer real-time connectivity between digital and physical construction environments, supporting adaptive decision making and enhanced collaboration. The state-of-the-art literature is reviewed, a structured DT framework is proposed and applications in hoisting management, safety and predictive analytics are examined. The study provides strategic insights into advancing Construction 4.0 by addressing scientific challenges that hinder the transition to intelligent construction and establishing a theoretical foundation for this transformation.