Pulsed laser ablation in liquid (PLAIL) has become a more important top-down process to directly create colloidal dispersion nanoparticles. From bulk material in an eco-friendly manner comparable with other methods such as hydrothermal synthesis, sol-gel, microemulsion, chemical coprecipitation, and thermal decomposing methods due to the interesting features of this method such as simple and low cost, the ablation atmosphere has done under high control, produces pure metal and metal oxide NPs, does not need a catalyst, and requires low amounts of chemical types. This review aims to highlight the most important factors affecting the process of synthesis of colloidal nanoparticles by pulsed laser ablation in a liquid environment (including liquid environment, focal length of the laser beam, laser wavelength, laser fluence, laser pulse duration, number of laser shots, ablation time, and the repetition rate of laser pulse) and how to control this parameter to prepare metal and metal oxide nanoparticles in collide that use in some applications such as solar cell, drug delivery, antibacterial activity, because these applications require colloidal nanoparticles.