Demand for micromachining has been on the rise in recent years owing to increasing miniaturization. Production of parts in microscale, especially with brittle materials, is challenging. Ultrasonic micromachining has been gaining popularity as a new alternative in fabrication of such parts. The process gives a machining option for geometrically challenging and/or brittle material parts that are difficult to machine by conventional processes. In the recent years, possibilities have been explored to improve the “Unit Removal” in microultrasonic machining (micro-USM). However, the research in the area is yet to attain momentum. The present paper is an attempt to present the state of the art in the area of micro-USM based on the literature. Developments in the critical areas of the process like machine tool technology, machining tool head, transducers, and precision attainable in the process with challenges have been discussed. Potential research issues have been explored for future work. Possible application areas have been identified.