Laser cladding (LC) has emerged as an advanced surface modification technology offering remarkable advantages in enhancing the wear resistance of metal surfaces. By utilizing the high energy density of lasers, LC rapidly melts pre-placed or fed materials on the substrate, forming a dense, metallurgically bonded coating after solidification. This review delves into the fundamental principles of LC, highlighting key process parameters—laser power, scanning speed, and powder feed rate—that critically impact the microstructure and wear resistance of the cladding layer. Furthermore, it examines LC’s role in enhancing the wear resistance of aluminum alloys and steels, with particular attention to the functions of Fe-based and Ni-based alloy powders. The rapid solidification and grain refinement achieved by LC contribute to improved hardness, wear resistance, and overall durability of metal components. Despite challenges such as cracking and thermal stress, LC demonstrates great potential for advancing industrial applications through optimized process parameters and material innovations.