The ability to manufacture a product using a number of different metals and alloys greatly increases flexibility in design and production. Properties such as heat, wear and corrosion resistance can be optimized, and benefits in terms of production economics are often gained. Joining of dissimilar metal combinations is, however, a challenging task owing to the large differences in physical and chemical properties which may be present. Laser welding, a high power density but low energy-input process, provides solutions to a number of problems commonly encountered with conventional joining techniques. Accurate positioning of the weld bead, rapid heating and cooling, low distortion, process flexibility, and opportunities for product redesign are its principal characteristics. The review describes the principles underlying laser welding of dissimilar metal combinations and highlights the above benefits in a number of practical applications. It is concluded that there is potential for its application in many industrial sectors.