Laser machining could be an alternative way for the fabrication of microchannels. In this study, laser machining of polymethylmethacrylate (PMMA) and polystyrene (PS) substrates were characterized in detail. A fabrication method preventing leakage at PS microchannel inlets was developed. The effect of laser parameters (power, speed and frequency) on engraving was analyzed by scanning electron microscopy. Laser ablation mechanism of both materials was explained through thermal analysis and material properties. Defocusing the laser beam was also analyzed as an additional parameter affecting the channel profile. Two parameters affecting the resolution were analyzed which are the minimum channel size that can be achieved by the laser beam and x-y stage of the laser engraver for straight and complex microchannel geometries. The hydrophilicity of the surface before and after laser machining was tested with contact angle measurements. The capabilities/limitations of machining were revealed through some complex channel structures. Finally, a passive micromixer and a droplet generator microfluidic devices were manufactured and tested, and promising results were obtained.