The construction industry is undergoing a significant transformation driven by digital technologies, with Building Information Modeling (BIM) emerging as a critical enabler of modular construction. BIM optimizes the design, manufacturing, and assembly of modular components, leading to improvements in efficiency, sustainability, and project delivery. This study examines the integration of BIM in modular construction, analyzing its impact on cost savings, resource optimization, and environmental performance. Case studies, including modular developments in China and the UK, reveal that BIM enhances design coordination, lifecycle cost control, and material efficiency, with observed benefits such as a 45% reduction in material waste, a 36% decrease in water consumption, and a 30% improvement in energy efficiency. Despite these advantages, challenges such as high initial costs, interoperability limitations, and workforce skill gaps continue to hinder widespread adoption. The findings underscore BIM’s role in addressing labor shortages, reducing carbon footprints, and improving overall construction efficiency. As modular construction gains global traction, BIM integration is positioned to redefine industry standards, promoting sustainable, cost-effective, and high-precision building solutions.