In the present investigation, a Q-switched Nd:YAG laser is used to study the various aspects of diamond processing for fabricating integrated optic and UV optoelectronic devices. Diamond is a better choice of substrate compared to silicon and gallium arsenide for the fabrication of waveguides to perform operations such as modulation, switching, multiplexing, and filtering, particularly in the ultraviolet spectrum. The experimental setup of the present investigation consists of two Q-Switched Nd:YAG lasers capable of operating at wavelengths of 1064 nm and 532 nm. The diamond cutting is performed using these two wavelengths by making the "V"-shaped groove with various opening angle. The variation of material loss of diamond during cutting is noted for the two wavelengths. The cut surface morphology and elemental and structural analysis of graphite formed during processing in both cases are compared using scanning electron microscopy (SEM) and laser Raman spectroscopy. Both the Q-Switched Nd:YAG laser systems (at 1064 nm and 532 nm) show very good performance in terms of peak-to-peak output stability, minimal spot diameter, smaller divergence angle, higher peak power in Q-switched mode, and good fundamental TEM 00 mode quality for processing natural diamond stones. Less material loss and minimal micro cracks are achieved with wavelength 532 nm whereas a better diamond cut surface is achieved with processing at 1064 nm with minimum roughness.