Hybrid machine tools combining additive and subtractive processes have arisen as a solution to increasing manufacture requirements, boosting the potentials of both technologies, while compensating and minimizing their limitations. Nevertheless, the idea of hybrid machines is relatively new and there is a notable lack of knowledge about the implications arisen from their in-practice use. Therefore, the main goal of the present paper is to fill the existing gap, giving an insight into the current advancements and pending tasks of hybrid machines both from an academic and industrial perspective. To that end, the technical-economical potentials and challenges emerging from their use are identified and critically discussed. In addition, the current situation and future perspectives of hybrid machines from the point of view of process planning, monitoring, and inspection are analyzed. On the one hand, it is found that hybrid machines enable a more efficient use of the resources available, as well as the production of previously unattainable complex parts. On the other hand, it is concluded that there are still some technological challenges derived from the interaction of additive and subtractive processes to be overcome (e.g., process planning, decision planning, use of cutting fluids, and need for a post-processing) before a full implantation of hybrid machines is fulfilled.