Recently, wireless technologies have been growing actively all around the world. In the context of wireless technology, fifth-generation (5G) technology has become a most challenging and interesting topic in wireless research. This article provides an overview of the Internet of Things (IoT) in 5G wireless systems. IoT in the 5G system will be a game changer in the future generation. It will open a door for new wireless architecture and smart services. Recent cellular network LTE (4G) will not be sufficient and efficient to meet the demands of multiple device connectivity and high data rate, more bandwidth, low-latency quality of service (QoS), and low interference. To address these challenges, we consider 5G as the most promising technology. We provide a detailed overview of challenges and vision of various communication industries in 5G IoT systems. The different layers in 5G IoT systems are discussed in detail. This article provides a comprehensive review on emerging and enabling technologies related to the 5G system that enables IoT. We consider the technology drivers for 5G wireless technology, such as 5G new radio (NR), multiple-input-multiple-output antenna with the beamformation technology, mm-wave commutation technology, heterogeneous networks (HetNets), the role of augmented reality (AR) in IoT, which are discussed in detail. We also provide a review on low-power wide-area networks (LPWANs), security challenges, and its control measure in the 5G IoT scenario. This article introduces the role of AR in the 5G IoT scenario. This article also discusses the research gaps and future directions. The focus is also on application areas of IoT in 5G systems. We, therefore, outline some of the important research directions in 5G IoT.