The marking of integrated circuit (IC) packages with neodymium-doped yttrium aluminium garnet (Nd: YAG) lasers has become a widely accepted technique in the microelectronics industry. This paper presents a literature survey and discussion of the various methods and mechanisms of Nd: YAG laser marking of plastic and ceramic IC packages. The effects of the material properties (e.g. the absorptivity and the melting point) and the marking parameters (e.g. power density, the focal position and the marking speed) on the mark legibility characteristics (e.g. the mark contrast and the mark width) are reviewed. Economic advantages and technological limitations of the marking of IC packages with Nd: YAG lasers are discussed also.