Abstract: The development of oriented silicon steel has had a crucial impact on power system. Driven by the national “two-carbon” strategy, the magnetic domain refinement of oriented silicon steel by laser precision machining has become the main method to reduce energy consumption. Describe that the domain structure is the key factor in the loss of oriented silicon steel transformers. Laser precision machining refines the domain structure by forming thermal stress zone on the surface of silicon steel with high energy laser beam to reduce iron loss. The research status of two kinds of laser precision machining techniques for refining magnetic domains is reviewed.Different laser power, laser spot shape, scanning speed, notch spacing and depth can obtain different iron loss reduction effects on the surface of silicon steel.