<p>The field of nanomaterials and advanced functional materials has recently come into existence due to the presence of unique structural, electrical, mechanical, thermal and chemical properties exhibited by them. The development of efficient material synthesis methods which can synthesize and process materials with precisely defined composition, morphology and functional properties is considered an important research area. Several methods are available for synthesis and processing of nanomaterials however laser-induced fabrication method has been found to be an efficient approach for fabrication of a wide variety of nanomaterials with high precision, minimum contamination and reproducibility. Based upon the processing technique used, laser-based methods allow the synthesis of carbon-based nanomaterials, heteroatom doped carbon-based nanomaterials, carbon-based composites, metallic alloys, ceramic materials and multifunctional composites. Apart from the fabrication of nanomaterials, there are several techniques like laser cladding, selective laser melting, laser shock peening, laser ablation, laser-induced graphene formation and laser assisted surface modification which have widened the scope of advanced material fabrication. This review focuses on providing an insight into the fundamental aspects and processing mechanisms employed in various laser-induced fabrication methods. Special attention will be paid to the laser-induced synthesis and functionalization of carbon-based nanomaterials.</p>