Abstract: Direct laser optical engineering and fabrication is a layer by layer deposition technique with unique possibilities for development compared with other layer by layer methods associated with rapid prototyping such as steroelithography,selective laser sintering or laminated object manufacture. This paper discusses the potential for the development of DLF by placing the technique in the context of the laser cladding technology from which it has emerged,reviewing the current stage of development and by developing some of the principles and concepts that underlie the advanced levels of development.