Laser additive manufacturing (LAM) has witnessed significant growth in recent years, particularly in the processing of stainless steel due to its corrosion resistance and favorable mechanical properties. In LAM, laser‐directed energy deposition (L‐DED) process offers unique advantages, allowing for the production of large and intricate components with high material utilization and reduced material wastage. Despite its numerous advantages, challenges such as controlling heat input, achieving precise layering, and minimizing residual stresses need to be addressed. The importance of understanding these challenges and mitigation of it, is one of major concern of L‐DED‐processed stainless steel parts. Existing review on metal additive manufacturing has primarily focused on tool steel and stainless steels (austenitic) with an emphasis on process parameter optimization and their effects on deposited part. However, there is a critical gap in understanding how the process parameters impact the evolution of microstructure during deposition, subsequently influencing mechanical and wear properties. Therefore, this review aims to fill that gap by conducting a comprehensive study on L‐DED processed especially 15‐5 precipitation‐hardened and stainless steel (SS) 316L, focusing on microstructural characteristics, texture evolution, microhardness variation, and their influence on mechanical properties and wear resistance. The significance of this review lies in providing valuable insights into the process structure–property relationships of L‐DED processed stainless steel especially in precipitation‐hardened and austenitic grade steel.