Downhole operations in the petroleum industry include drilling and completing the well for production. Experiments conducted on different types of lasers have shown the potential of the cutting -edge technology being applied in downhole operations. One of the tests was conducted on MIRACL (Mid Infrared Advanced Chemical Laser) to determine its feasibility for drilling and perforating petroleum wells and another was on COIL (Chemical Oxygen-Iodine Laser) to determine the least specific energy (SE) needed to destroy varying rock types. This paper presents the applications of laser technology in downhole operations such as drilling, perforation, stimulation, vaporizing stuck pipes, tracer detection, treatment of asphaltene deposition and cutting of subsurface equipment such as casings, tubing strings etc. Its benefits are presented in terms of effects on Rate of Penetration (ROP), operational downtime, formation damage, clay treatments, flow enhancement and overall well deliverability. Laser technology has been utilized successfully in the medical industry, manufacturing industry, nuclear industry etc. Therefore, its applications in downhole operations are major strides in the petroleum industry and a means of optimizing downhole operational practices. It has been reported that integrating laser technology with conventional drilling technology will immensely improve drilling efficiency but this has not been so far applied in the field. Conclusions derived from a two year project funded by The Gas Research Institute (now Gas Technology Institute) in 1997 on "Adapting Star Wars High-Powered Lasers to Drilling Natural Gas Wells," are that lasers can cut rock of all lithologies; shear power shares importance in cutting rock with such parameters as wavelength, purge gas pressure and hole size; and historical and widely accepted theoretical calculations of the laser power needed to spall (break), melt and vaporize rock are significantly higher than experimental values. Just like any new technology, laser technology has its challenges and they are highlighted accordingly.