<p>Laser cladding technology is an advanced surface modification technique that is extensively applied in the manufacturing industry. Due to its rapid heating and cooling characteristics, residual stress is extremely prone to formation. Higher residual stresses can lead to the deformation and cracking of components, which not only affects the dimensional accuracy and surface quality of the components but also impacts their service performance. Machining of the cladding layer can release the tensile residual stresses induced during the laser cladding process to a certain extent, effectively reducing thermal stress deformation in the clad parts and thereby enhancing the machining accuracy, surface quality, and service performance of the components. Additive-subtractive hybrid manufacturing technology combines the advantages of laser cladding and subtractive machining, thereby further enhancing the machining accuracy and surface quality of parts. With the rapid advancements in computer technology, numerical simulations are now extensively used in the study of residual stresses in laser cladding additive-subtractive hybrid manufacturing (LCASHM). Consequently, by the use of numerical simulations of residual stresses in LCASHM, it is possible to deeply reveal the mechanism of residual stress formation in laser cladding additive processing without the need of extensive experimental work and thus achieve the prediction and control of residual stress in LCASHM. This article analyzes the mechanism of residual stress generation in LCASHM and reviews the current status of numerical simulation on residual stress. The control measures of residual stress are summarized. The shortcomings of current research and future development trends are pointed out. This provides the references and guidance for advancing research on numerical simulations of residual stress in LCASHM.</p>