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This paper reviews the recent development of Digital Twin technologies in manufacturing systems and processes, to analyze the connotation, application scenarios, and research issues of Digital Twin-driven smart manufacturing in the context of Industry 4.0. To understand Digital Twin and its future potential in manufacturing, we summarized the definition and state-of-the-art development outcomes of Digital Twin. Existing technologies for developing a Digital Twin for smart manufacturing are reviewed under a Digital Twin reference model to systematize the development methodology for Digital Twin. Representative applications are reviewed with a focus on the alignment with the proposed reference model. Outstanding research issues of developing Digital Twins for smart manufacturing are identified at the end of the paper.