The past decade has registered a rapid expansion of research effort focused on microscale thermophysical engineering. The increased technological demand for the miniaturization of devices requires a comprehensive understanding of the fundamental phenomena that govern thermal transport at short length and time scales. A substantial amount of microscale research has been devoted to microelectromechanical systems (MEMS) and ensuing design challenges. Improved fabrication, processing, and measurement and analysis tools have been critical to new technological achievements. This paper reviews the recent progress in microscale thermophysical engineering as seen in fast-developing areas such as thermal transport phenomena, experimental and computational techniques, thermal microdevices and laser applications. Promising research directions in these areas are also highlighted.