In contemporary manufacturing industries, composite materials such as carbon fiber reinforced plastics (CFRPs) have become indispensable, finding extensive applications in aerospace, automotive, shipbuilding, high-tech sports equipment, and more. The exceptional chemical, physical, and mechanical properties of CFRPs, including high corrosion resistance, superior strength-to-weight ratio, high fatigue strength, and oxidation resistance, make them highly sought after. However, these very advantages pose significant challenges during machining due to the abrasive nature of composites, anisotropic mechanical properties, and poor thermal conductivity, which collectively exacerbate tool wear. This review paper addresses the critical need for innovative solutions to improve the machinability of CFRPs, a subject of paramount importance for advancing manufacturing efficiency and product quality. It comprehensively examines the latest research progress, current practices, and emerging trends in machining techniques such as turning, drilling (including reaming and countersinking), milling and grinding. The review delves into the influence of various cutting conditions, environments, and tool geometries. It also examines tool textures, materials, and coatings. Additionally, advanced machining methods, including vibration, thermal, and hybrid-assisted machining, are discussed. These factors impact key performance metrics such as cutting forces and torques, tool wear and life, chip morphology, surface roughness, and the quality of machined surfaces, including defect analysis. By synthesizing a vast array of literature for the first time, this paper highlights the most effective strategies to enhance machinability while extending tool life and improving surface finish. Notably, it underscores the innovative use of dry and flood lubrication, minimum quantity lubrication, cryogenic lubrication, and high-pressure cooling. Additionally, it emphasizes optimizing cutting tool geometry, employing diamond tools, and coating tools with TiN and TiAlN, alongside the application of heat treatment and hybrid machining methods, particularly those incorporating vibration machining techniques. This review not only identifies the current challenges but also proposes cutting-edge solutions, making it an essential resource for researchers and practitioners aiming to push the boundaries of CFRP machining technology.