This paper reviews recent advances in Wire Electrical Discharge Machining (WEDM), a thermo-electric machining process capable of producing complex, high-precision components that are difficult to machine conventionally. The study highlights the growing importance of WEDM in processing advanced materials and composites, particularly due to its ability to handle high strength, hardness, and toughness. It consolidates research on optimization strategies and computational approaches for advanced manufacturing, aiming to guide the selection of suitable techniques for real-world problems such as process simulation. The review also discusses hybrid machining developments, industrial applications of WEDM, and studies on metal matrix composites (MMCs), emphasizing the impact of cutting parameters such as feed rate, voltage, wire tension, and dielectric flow rate on outcomes like material removal rate, kerf width, and surface roughness. Finally, it outlines future research directions for WEDM.