Modular construction has gained popularity and attention particularly in low-rise building lately due to its numerous advantages: faster construction speed, better quality control, reduction in work force and construction waste, etc. This innovative technology promotes off-site manufacturing of modular units and on-site assembly, improving the construction efficiency and productivity. However, modular construction is not commonly used in high-rise buildings because of the joints’ flexibility as well as manufacturing and construction tolerance, which have significant impact on the overall stability of the building. This paper highlights the existing challenges of modular construction of high-rise buildings and provide several options to address these challenges. Firstly, the weight of a module is constrained by the transportation and lifting crane capacities. For this reason, lightweight concrete is introduced together with structural steel section to form lightweight steel-concrete composite system to reduce the weight of the module without compromising the strength and stiffness. Secondly, to speed up the site assembly of modular units, special joints are developed to resist the forces due to gravity and horizontal loads. Fast and easy joining techniques with acceptable tolerance control are essential to ensure the structural integrity and stability of the building. Finally, the innovation for productivity can be maximized by implementing automation technologies in the manufacturing and construction of the modular units.