Conventional methods of producing ceramic components are based on sintering technology which requires expensive tooling making it uneconomic for small batch fabrication. Laser milling provides a new method of producing parts in a wide range of materials, including ceramics, directly from CAD data. This paper considers the technical capabilities of laser milling when applied to the machining of microcomponents from alumina and silicon nitride ceramics. The main parameters affecting the material removal characteristics of laser milling are reviewed. A new technique for machining alumina components is proposed emphasising the importance of correct set-up design in achieving a high level of accuracy. Process parameters influencing part quality are analysed and guidelines for machine set-ups are formulated. The paper concludes with an assessment of the accuracy of the laser milling process.