In order to solve the Achilles’ heel of recast layer and heat affected zone produced during laser machining, a new processing of neutral salt solution assisted laser machining (SALM) is put forward, which can remove recast layer and heat affected zone (HAZ) on-line by using the effect of salt solution on the thermal chemical reaction and continuing cooling effect of materials. Based on the properties of laser attenuation in neutral salt solution, the experimental system was designed, and a drilling experiment on a 0.5mm thickness stainless steel sheet was done. It is confirmed that the principle of SALM is right and the processing is feasible by comparing the results of the SALM with laser beam machining (LBM) in air. The drilling experiment results show that the quality of removing recast layer and HAZ are better with the increase of solution concentration and flow velocity, and the thickness of recast layer is reduced by 80%, the dimension of HAZ is reduced by more than 90% during SALM in NaCl solution with concentration of 20% and flow velocity of 5 m/s.