Additive manufacturing has already been established as a highly versatile manufacturing technique with demonstrated potential to completely transform conventional manufacturing in the future. The objective of this paper is to review the latest progress and challenges associated with the fabrication of multi-material parts using additive manufacturing technologies. Various manufacturing processes and materials used to produce functional components were investigated and summarized. The latest applications of multi-material additive manufacturing (MMAM) in automotive, aerospace, biomedical and dentistry field were demonstrated. Investigation on the current challenges were also carried out to predict the future direction of MMAM processes. It is concluded that the further research and development needed in the design of multi-material interfaces, manufacturing processes and material compatibility of MMAM parts are necessary.