Additive Manufacturing (AM) holds significant promise for transforming manufacturing industries towards sustainability. This paper explores the principles, advancements, and challenges in sustainable additive manufacturing, contrasting it with the environmental impact of traditional manufacturing processes. Principles such as reducing environmental impact, energy efficiency, material efficiency, and economic viability are discussed, emphasizing the role of AM in promoting eco-friendly production practices. The study explores progress in environmentally friendly additive manufacturing (AM) technologies, focusing on eco-conscious materials, energy-conserving processes, and techniques for minimizing waste, highlighting the industry's commitment to sustainability. Direct energy deposition (DED) uses a laser to create a melt pool for either powder or wire feed, enabling high deposition rates and allowing multi-material builds. It is ideal for fabricating large components and repairing damaged parts. Powder Bed Fusion (PBF) employs selective melting of metal powder layers using either a laser or electron beam, achieving high precision suitable for complex geometries and fine features. While DED is favoured for large structures, PBF is preferred in applications requiring lightweight, intricate parts with minimal post-processing. The inclusion of Life Cycle Assessment (LCA) into Additive Manufacturing (AM) and its effects on evaluating environmental consequences and economic viability. The research also delves into the obstacles and prospective developments in the field of sustainable AM. By addressing these challenges and embracing future directions, AM can play a vital role in achieving a circular economy and reducing environmental impact in manufacturing industries.