This review investigates the recent advancements aimed at optimizing the mechanical performance of three‐dimensional (3D)‐printed polymer matrix composites (PMCs), motivated by the need to overcome the inherent limitations of additive manufacturing (AM) in achieving desired mechanical properties. The study focuses on two primary areas: (1) microstructural refinements through strategic control of parameters such as reinforcement type, size, orientation, and interfacial properties and (2) processing enhancements involving the modification of build parameters, material formulations, and posttreatments. The review systematically analyzes the interdependencies between microstructure‐property relationships and processing‐performance characteristics. Key findings include an improvement of up to 50% in strength and toughness through optimized microstructure and printing techniques, which are compared with results from other studies that reported a maximum of 30%–40% improvement under similar conditions. The review also highlights the successful application of these approaches in various case studies, demonstrating their potential to substantially enhance the dimensional control and functional properties of 3D‐printed PMCs, making them suitable for diverse applications ranging from aerospace components to flexible sensors. Despite these advancements, challenges such as performance consistency, part quality, and scalability remain, emphasizing the need for continued research to fully exploit the potential of 3D‐printed PMCs.