Laser cladding technology has attracted substantial attention in cutting-edge areas of metal surface repair and remanufacturing research. Nevertheless, excessive residual stress of cladding is the primary obstacle that hinders its practical application in aerospace, engineering machinery, and other industries. Herein, a comprehensive review of recent advances in the residual stress release in laser cladding is provided in three sections. The first section covers how various laser parameters and material characteristics affect residual stress. The second section discusses the effect and comparison of matching heat treatment methods before and after the laser cladding process on residual stress. The final section focuses on a brand-new concept and technique to release the residual stress during the cladding process via phase transformation. We hope that this review will be a reference for theoretical research and implementation of new laser cladding materials and technologies and present possible scientific solutions and prospects for the ideal reduction in residual stress during the cladding process.