<p>Ultra-precision machining requires a fundamentally different level of technical capability compared to conventional machining, as it must achieve nanometer-scale dimensional accuracy and surface finish. In this process, setting the workpiece coordinate is of particular importance because even minute setup errors can critically impact the final machining results. This paper provides a comprehensive review of various techniques for setting work coordinates in ultra-precision machining. First, these techniques are broadly categorized into indirect methods, which measure the tool position indirectly using sensors or probes, and direct methods, where the cutting tool itself serves as a sensor to detect the moment of contact or directly measure the gap between the tool and the workpiece. Although indirect methods are relatively straightforward to automate and enhance process stability, additional errors may occur when replacing probes. Meanwhile, direct methods allow for precise detection of contact moments or extremely small gaps; however, in the case of contact-based approaches, there is a substantial risk of surface damage or breakage of ultra-precision tools, whereas non-contact methods can be both expensive and highly sensitive to environmental factors. This paper examines a variety of contact detection techniques, including acoustic emission (AE), accelerometers, force sensors, electrical phenomena, and disturbance observers as well as non-contact detection methods using lasers, optical sensors, and electrical phenomena. In addition, it explores how uncertainty analysis and compensation strategies based on standards such as ISO 15530 can minimize the impact of setup errors on overall machining accuracy. Ultimately, the paper emphasizes that, in order to maximize the performance of ultra-precision equipment, peripheral technologies capable of achieving nanometer-scale precision in the workpiece coordinate setting process must continue to advance and be integrated.</p>