Ultrafast lasers, characterized by femtosecond and picosecond pulse durations, have revolutionized material processing due to their high energy density and minimal thermal diffusion, and have played a transformative role in precision manufacturing. This review first traces the progression from early ruby lasers to modern titanium–sapphire lasers, highlighting breakthroughs like Kerr-lens mode-locking and chirped pulse amplification. It also examines the interaction mechanisms between ultrafast pulses and various materials, including metals, dielectrics, and semiconductors. Applications of ultrafast lasers in microstructure processing techniques are detailed, such as drilling, cutting, surface ablation, and nano welding, demonstrating the versatility and precision of the technology. Additionally, it covers femtosecond laser direct writing for optical waveguides and the significant advancements in imaging and precision measurement. This review concludes by discussing potential future advancements and industrial applications of ultrafast lasers.