Machine tools as indispensable tools for manufacturing products are typical high-energy, high-carbon manufacturing systems due to their larger mass, longer life cycles and huge resources and energy consumption. The current research trend of sustainable machine tools aims to reduce cost, energy consumption and increase sustainability without compromising their functionality, usability, productivity, accuracy, etc. However, there is a lack of systematic reviews about what are the key technologies for sustainable machine tools design. Thus, a comprehensive literature review of machine tool design for sustainability is needed in order to make clear how to design and evaluate sustainable machine tools from the viewpoint of life cycle sustainability analysis. The aim of this paper is to review the sustainable design and assessment aspects of machine tool design from partial goals to integrated aims according to whole sustainability dimensions such as the environment, economy and society, as well as involving key techniques in different life cycle stages. Recent research and study on improving directly or indirectly sustainability performance of machine tools according to focus points could be summarized as: design optimization of components such as lightweight using topology and bionic methods; structure design with modular design and layout; reducing cutting fluids and lubricant oil by employing minimum quantity lubrication, dry and cryogenic machining; reducing energy consumption; waste reduction by reusing, remanufacturing and recycling; sustainability assessment i.e., energy model, life cycle cost and life cycle social benefit. This paper assists designers and manufacturers to improve sustainability of machine tools by specific optimization measures in their activities.