Laser-processing technology has been widely used in the ultra-precision machining of diamond materials. It has the advantages of high precision and high efficiency, especially in the field of super-hard materials and high-precision parts manufacturing. This paper explains the fundamental principles of diamond laser processing, introduces the interaction mechanisms between various types of lasers and diamond materials, focuses on analyzing the current development status of various modes of laser processing of diamond, briefly discusses the relevant applications in diamond cutting, micro-hole forming, and micro-groove machining, etc., and finally discusses the issues, challenges, and potential future advancements of laser technology in the field of diamond processing at this point.