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Advances in sensing technologies are increasingly transforming cutting operations by enabling data-driven condition monitoring, predictive maintenance, and process optimization. This review surveys recent developments in sensing modalities for cutting systems, including vibration sensors, acoustic emission sensors, optical and vision-based systems, eddy-current sensors, force sensors, and emerging hybrid/multi-modal sensing frameworks. Each sensing approach offers unique advantages in capturing mechanical, acoustic, geometric, or electromagnetic signatures related to tool wear, process instability, and fault development, while also showing modality-specific limitations such as noise sensitivity, environmental robustness, and integration complexity. Recent trends show a growing shift toward hybrid and multi-modal sensor fusion, where data from multiple sensors are combined using advanced data analytics and machine learning to improve diagnostic accuracy and reliability under changing cutting conditions. The review also discusses how artificial intelligence, Internet of Things connectivity, and edge computing enable scalable, real-time monitoring solutions, along with the challenges related to data needs, computational costs, and system integration. Future directions highlight the importance of robust fusion architectures, physics-informed and explainable models, digital twin integration, and cost-effective sensor deployment to accelerate adoption across various manufacturing environments. Overall, these advancements position advanced sensing and hybrid monitoring strategies as key drivers of intelligent, Industry 4.0-oriented cutting processes.