Pulsed laser ablation in liquid, used for nanoparticle synthesis from solid bulk metal targets (a top-down approach), has been a hot topic of research in the past few decades. It is a highly efficient and ‘green’ fabrication method for producing pure, stable, non-toxic (ligand-free), colloidal nanoparticles, which is often challenging using traditional chemical methods. Due to the short time scale interaction between the laser pulses and the target, it is difficult to achieve complete control on the physical characteristics of metallic nanoparticles. Laser process parameters, liquid environment, and external fields vastly effect the shape and structure of nanoparticles for targeted applications. Past reviews on pulsed laser ablation have focused extensively on synthesising different materials using this technique but little attention has been given to explaining the dependency aspect of the process parameters in fine-tuning the nanoparticle characteristics. In this study, we reviewed the state of the art literature available on this technique, which can help the scientific community develop a comprehensive understanding with special insights into the laser ablation mechanism. We further examined the importance of these process parameters in improving the ablation rate and productivity and analysed the morphology, size distribution, and structure of the obtained nanoparticles. Finally, the challenges faced in nanoparticle research and prospects are presented.