Laser Beam Machining (LBM) has several applications in the aerospace, medical, and automobile domains. Optimization techniques are essential for LBM to increase resource-efficiency and sustainability of the system. The present paper aims to provide a systematic review of the research in the domain of optimization techniques for LBM. A total of 228 research papers published during the last 20 years, from 2003 to 2023, are reviewed. The literature review is classified into three major sections- (i) optimization techniques, (ii) applications of optimization techniques, and (iii) challenges and future directions. The novelty of the present systematic review paper is to provide a direction for future research in the domain of optimization techniques of LBM. As a result of the suggested research, an efficient and sustainable LBM with the required performance will be developed in the shortest possible time.