Survey has been conducted to develop laser processing technology utilizing the interaction between substance and photon. This is a part of the leading research on photon technology development. The photon technology development is aimed at novel technology development highly utilizing the quantum nature of photons. In the field of laser processing, high quality photons are used as tools, special functions of atoms and molecules will be discovered, and processing for functional fabrication (photon machining) will be established. A role of laser processing in industries has become significant, which is currently spreading not only into cutting and welding of materials and scalpels but also into such a special field as ultrafine processing of materials. The spreading is sometimes obstructed due to the difficulty of procurement of suitable machines and materials, and the increase of cost. The purpose of this study is to develop the optimal laser technology, to elucidate the interaction between substance and photon, and to develop the laser system and the transmission and regulation systems which realize the optimal conditions. 387 refs., 115 figs., 25 tabs.