Lasers quickly penetrated into Japanese industries in the mid-80s. The paper reviews the present situation of industrial lasers and their applications in Japanese industries for materials removal, joining, and some surface modification technologies as well as their economical evaluation compared with competitive technologies. Laser cutting of metallic and nonmetallic thin sheets is widely prevalent even in small scale industries as a flexible manufacturing tool. As for the laser welding is concerned, industrial applications are rather limited in mass production lines. This mainly comes from the fact that the present laser technologies have not employed the adaptive control because of the lack of sensors, monitoring, and control systems which can tolerate the high-precision and high-speed processing. In spite of this situation, laser welding is rapidly increasing in recent years in industries such as automotive, machinery, electric/electronic, steel, heavy industries, etc. Laser surface modification technologies have attracted significant interest from industrial people, but actual application is very limited today. However, the number of R&D papers is increasing year by year. The paper also reviews these new technology trends in Japan.