This review paper summarizes the application of smart manufacturing systems utilized in drilling and hole machining processes. In this perspective, prominent sensors such as vibration, cutting forces, temperature, current/power and sound used in the contemporary indirect and direct tool condition monitoring systems are handled one-by-one according to their applications during machining of holes. Thus, it is aimed to show several operations with the application stages and literature papers which utilize the sensorial data such as grinding, reaming, broaching, boring, tapping, drilling and countersinking. The novel side of this paper is summarizing the all-hole machining processes utilizing sensor systems while benefitting their predictive ability for improved machinability characteristics such as surface integrity, tool wear, dimensional accuracy, chip morphology.