AbstractAs a more sustainable alternative to carbon fiber reinforced thermosetting (CFRTS) composites, carbon fiber reinforced thermoplastic (CFRTP) composites are increasingly being used to favor the lightweight design and energy‐saving needs of the new generation high‐end equipment. Usually, cutting is an essential manufacturing process for CFRTP components to overcome the preparation limitations and meet the assembly requirements. However, CFRTP is regarded as a typical difficult‐to‐machine material, resulting in extremely poor machining quality and efficiency. In this paper, a comprehensive literature review on the cutting of CFRTP is provided from three aspects. Firstly, the chip formation, cutting force, and cutting temperature are described to understand the cutting mechanism clearly. Secondly, the influencing factors of damage formation as well as the damage detection methods are summarized. Finally, the improvement methods of machining quality in recent years, from cutting parameters, cutting tools, and assisted machining technologies, are presented. Furthermore, the conclusions and future trends in the cutting of CFRTP are discussed, which offers a significant reference value for the realization of high‐quality and efficient machining of CFRTP.Highlights CFRTP has attracted widespread attention in the high‐end equipment manufacturing due to its excellent mechanical properties and environmental friendliness. Cutting is an essential manufacturing process for CFRTP components. Cutting mechanism, machining damage, and improvement method of machining quality during the cutting of CFRTP are reviewed. The current research gaps and future trends are discussed.