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This review paper covers a topic of significant importance in micro- and nano-systems development and manufacturing, specifically the residual stresses in deposited thin-film material layers and methods to control or mitigate their impact on device behavior. A residual stress is defined as the presence of a state of stress in a thin-film material layer without any externally applied forces wherein the residual stress can be compressive or tensile. While many material properties of deposited thin-film layers are dependent on the specific processing conditions, the residual stress often exhibits the most variability. It is not uncommon for residual stresses in deposited thin-film layers to vary over extremely large ranges of values (100% percent or more) and even exhibit changes in the sign of the stress state. Residual stresses in deposited layers are known to be highly dependent on a number of factors including: processing conditions used during the deposition; type of material system (thin-films and substrate materials); and other processing steps performed after the thin-film layer has been deposited, particularly those involving exposure to elevated temperatures. The origins of residual stress can involve a number of complex and interrelated factors. As a consequence, there is still no generally applicable theory to predict residual stresses in thin-films. Hence, device designers usually do not have sufficient information about the residual stresses values when they perform the device design. Obviously, this is a far less than ideal situation. The impact of this is micro- and nano-systems device development takes longer, is considerably more expensive, and presents higher risk levels. The outline of this paper is as follows: a discussion of the origins of residual stresses in deposited thin-film layers is given, followed by an example demonstrating the impact on device behavior. This is followed by a review of thin-film deposition methods outlining the process parameters known to affect the resultant residual stress in the deposited layers. Then, a review of the reported methods used to measure residual stresses in thin-films are described. A review of some of the literature to illustrate the level of variations in residual stresses depending on processing conditions is then provided. Methods which can be used to control the stresses and mitigate the impact of residual stresses in micro- and nano-systems device design and fabrication are then covered, followed by some recent development of interest.