The paper presents human friendly system solutions and manufacturing technology for mechatronic systems, developed at Fraunhofer IZM using well-adapted resources and human friendly materials. Micro-Mechatronics & System Integration is a multidisciplinary field, which offers low cost system solutions based on the principle of homogenizing system components and consequent elimination of at least one material component or packaging level from the system. These system approaches show, compared to the existing solutions, a higher functionality, more intelligence and better reliability performance. The mechatronic packages are discussed in detail. Especially cost, reliability performance and according “Design for Reliability” show the potential of micro-mechatronic solutions in automotive and industrial applications. Future fields of application for mechatronics will include robotics and industrial engineering. Medical technology can be regarded as one of the markets with the biggest potential for the use of micro-mechatronic technology.