<p>Additive and subtractive hybrid manufacturing (ASHM) combines the advantages of additive manufacturing and subtractive manufacturing, and has become a cutting-edge direction for addressing the manufacturing bottlenecks of high-performance and difficult-to-machine complex components. This technology integrates additive manufacturing and subtractive manufacturing, significantly enhancing the geometric accuracy and surface integrity of the parts. Through the thermal coupling effect, it regulates the microstructure and residual stress, thereby improving the comprehensive mechanical properties of the components. This paper reviews the research progress of ASHM, focusing on in-depth discussions on core issues such as equipment development, process planning strategies, microstructural evolution mechanisms, residual stress evolution laws, and machinability. The article reviews the current technical status and development trends of integrated ASHM equipment; analyzes three types of process planning methods, namely “add-then-subtract”, “alternating additive-subtractive”, and “decomposition and reassembly”, and their influence mechanisms on manufacturing quality; from the perspective of thermal coupling, it reveals the physical essence of grain refinement, phase transformation behavior, and residual stress redistribution in ASHM process; elaborates on the synergistic enhancement effect in improving surface integrity, mechanical properties, and the machinability of complex internal cavities; deepens the understanding of the multi-scale mechanism of ASHM, providing theoretical support for its process optimization, intelligent control, and standardized application, and promoting the industrialization process of this technology in the high-end manufacturing field.</p>