This review explores the latest advancements in innovative material processing techniques in precision manufacturing. It covers additive manufacturing (AM), subtractive manufacturing, and hybrid approaches. AM, or 3D printing, enables the production of complex geometries with high precision and has expanded applications through the use of new materials like metal alloys, polymers, and composites. Subtractive techniques such as milling, turning, and grinding have also evolved, with emerging technologies like abrasive waterjet machining, EDM, and laser machining improving accuracy and surface finish. Hybrid manufacturing combines additive and subtractive methods to produce intricate components with high precision, reduced lead times, and minimized waste. Process monitoring and control technologies, including in-process sensing and real-time feedback systems, enhance quality assurance and productivity. Computational tools, simulation techniques, and AI further optimize and customize material processing. The review highlights the importance of sustainability, the integration of advanced materials, and the need for life cycle assessments. Future directions include the development of sustainable ultra-precision manufacturing, the use of AI in manufacturing, and the integration of hybrid manufacturing processes. The review concludes that innovation in material processing is essential for meeting the evolving demands of precision manufacturing, with a focus on sustainability, efficiency, and customization.This review explores the latest advancements in innovative material processing techniques in precision manufacturing. It covers additive manufacturing (AM), subtractive manufacturing, and hybrid approaches. AM, or 3D printing, enables the production of complex geometries with high precision and has expanded applications through the use of new materials like metal alloys, polymers, and composites. Subtractive techniques such as milling, turning, and grinding have also evolved, with emerging technologies like abrasive waterjet machining, EDM, and laser machining improving accuracy and surface finish. Hybrid manufacturing combines additive and subtractive methods to produce intricate components with high precision, reduced lead times, and minimized waste. Process monitoring and control technologies, including in-process sensing and real-time feedback systems, enhance quality assurance and productivity. Computational tools, simulation techniques, and AI further optimize and customize material processing. The review highlights the importance of sustainability, the integration of advanced materials, and the need for life cycle assessments. Future directions include the development of sustainable ultra-precision manufacturing, the use of AI in manufacturing, and the integration of hybrid manufacturing processes. The review concludes that innovation in material processing is essential for meeting the evolving demands of precision manufacturing, with a focus on sustainability, efficiency, and customization.