A versatile, automated, laser-based system, capable of producing complex threedimensional shapes of ceramic and ceramic composite materials, through either controlled layer ablation or solid freeform fabrication, is currently under development. The system comprises a 1.2 kW C021aser, positioning system, beam scanner, non-contacting positioning sensor, beam conditioner and CAD/CAM system. This paper reports progress in relating machine parameters (scan rate, feed, beam power and polarization) to process measurables (material removal rate and surface roughness), and demonstrates the potential for rapid prototyping and direct manufacturing of: (a) rotationally symmetric components based on ablative ceramics such as Si3N4 and (b) graphite fuel cell plenums