The machining mechanisms in milling for medium-density fiberboard (MDF) and wood-plastic composites (WPC) are reviewed in this article. The study focuses on milling tool wear, chip formation mechanisms, processing stability, and machined surface roughness. The influence law of cutting parameters (cutting speed, feed rate, and cutting thickness), tool materials and geometry (rake angle, relief angle, and size parameters), temperature, and other factors on tool wear and machined surface roughness were considered. Concrete measures to improve tool life and machined surface quality are summarized as well as an online monitoring system of tool wear and machined surface roughness. Future research of tool wear and surface quality in milling wood-based materials is proposed to provide important references for wood-based materials researchers.