Laser processing technology is distinguished by its high degree of precision and versatility, which enables the processing of a diverse range of materials, including metals and non-metals. It has been employed extensively in industrial sectors, including aviation, automotive, and shipbuilding. However, conventional laser processing has certain limitations. These include the low efficiency of ultrafast laser processing, the thermal effects on the surface of conventional laser processing, and the formation of recast layers. In order to address these issues, laser liquid composite processing technology has emerged and flourished. The incorporation of liquid not only enhances the overall efficiency of laser processing but also markedly improves the quality of the resulting product. During the processing, the liquid fulfils the functions of a coolant, lubricant, and cleaning agent, effectively eliminating the heat-affected zone and recast layer. The implementation of liquid cooling and flushing facilitates the expeditious removal of processed products, thereby enhancing surface quality and further optimizing processing efficiency. This paper presents a comprehensive review of the latest research developments in the field of laser liquid composite processing, with a specific focus on water-assisted laser processing technology and electrolyte-assisted laser processing technology. Additionally, it provides an outlook on their future development directions.