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Mild steel is a popular material used in various applications due to its excellent machinability, strength and durability. Mild steel is one of the most affordable materials available, making it an excellent choice for budget-conscious projects. Regrettably, Mild steel is not typically used in some industries due to its low strength-to-weight ratio and limited corrosion resistance. AISI 1020 steel is relatively soft and has limited wear resistance compared to other types of steel, particularly those with higher carbon content. This review paper discusses the profitable and successful approach to enhance the service life and utility of the mild steel machinery components. Various investigators have put their effort into developing different methods to improve the properties of the mild steel components. The laser cladding process is developed by the melting of the preplaced coating layer with the surface of the substrate simultaneously which is able to prevent direct contact with the environment. The present review paper discussed in detail the impact of various parameters of laser cladding process and variation of the coating materials on the surface properties and microstructure of mild steel. Some challenges and remedies are also discussed in the paper. This review paper focused on some potential uses of the laser cladding process in diverse industries.