The recent engineering applications demand the use of tough, high intensity and high temperature resistant materials in technology, which evolved the need for newer and better finishing techniques. The conventional machining or finishing methods are not workable for the hard materials like carbides; ceramics, die steel. Magnetorheological fluid assisted finishing process is a new technique under development and becoming popular in this epoch. With the use of external magnetic field, the rheological properties of the MR fluid can be controlled for polishing the surfaces of components. An extended survey of the material removal mechanism and subsequent evolution of analytical MR models are necessary for raising the finishing operation of the MR fluid process. Understanding the influence of various process parameters on the process performance measures such as surface finish and material removal rate. The objective of this study is to do a comprehensive, critical and extensive review of various material removal models based on MR fluid in terms of experimental mechanism, finding the effects of process parameters, characterization and rheological properties of MR fluid. This paper deals with various advancements in MR fluid based process and its allied processes have been discussed in the making the developments in the future in these processes.