This work presents a survey on the recent progress in laser ablation of a solid target in a confining liquid for the synthesis of nanocrystals with focus on the mechanism of nanocrystal growth. The effects of liquid confinement, thermodynamic nucleation, phase transition, and kinetic growth of the nanostructures are discussed in detail. Besides, a variety of applications of the laser ablation is reviewed, including surface patterning, surface cleaning, and surface coating. Experimental results and theoretical analysis indicate that laser ablation of a solid target in a confining liquid provides an effective means to synthesize nanocrystals, especially for the metastable nanocrystals such as diamond and carbon related materials, immiscible alloys, etc. The laser ablation in liquids has demonstrated the following advantages: (i) a chemically "simple and clean" synthesis, (ii) an ambient conditions not extreme temperature and pressure, and (iii) the new phase formation of nanocrystals may involve in both liquid and solid. These advantages allow us to combine selected solid targets and liquid to fabricate compound nanostructures with desired functions. (c) 2006 Elsevier Ltd. All rights reserved.