Laser surface processing involves modification of surface microstructure and/or composition of the near surface region of a component using a high power laser beam. The advantages of laser surface processing over conventional equilibrium surface processing include rapid processing rate, retention of non-equilibrium microstructure, alloying in liquid state and development of processed zone with superior properties as compared to the same developed by equilibrium processing route. Microstructure plays an important role to control the final properties of the tailored component. In the present contribution, with a brief introduction to laser, and its application, the microstructures developed under optimum conditions by different laser surface processing will be discussed with the corresponding improvement in properties. Finally, a brief review of the future scope of research in laser surface processing will be presented.