Abstract: The processing flow of InP substrates includes slicing, lapping, and polishing. The surface/subsurface damage (SD/SSD) caused during processing stages can significantly affect material properties, epitaxial film qualities, and device performance and reliability. The research status of InP wafer slicing, lapping, and polishing was reviewed, the existing problems were analyzed, and the development prospects and some experimental plans of InP ultra-precision processing were pointed out. To address the critical issues of SD/SSD and high wafer material loss during processing. By employing a combined approach of theoretical calculations, simulations, and experimental validation to investigate the mechanical properties of InP wafers and their deformation mechanisms under processing conditions to study the formation, impact, regulation, and removal mechanisms of SD/SSD during multi-wire diamond wire slicing, free-abrasive assisted fixed-abrasive lapping, and green environmentally friendly chemical mechanical polishing, to ascertain the regulation mechanisms and process methods for SD/SSD during slicing, lapping, and polishing to achieve high-quality, high-efficiency, damage-free, and environmentally friendly processing of wafers, and to obtain theories and methods for atomic-scale precision on substrate surfaces. These findings can provide valuable references and insights for other researchers conducting related studies.