Since the initial research leading to the production of diamond composite materials, there have been several important developments leading to significant improvements in the properties of these superhard composite materials. Apart from the fact that diamonds, whether originating from natural resources or synthesised commercially, are the hardest and most wear-resistant materials commonly available, there are other mechanical properties that limit their industrial application. These include the low fracture toughness and low impact strength of diamond. By incorporating a range of binder phases into the sintering production process of these composites, these critically important properties have been radically improved. These new composites can withstand much higher operating temperatures without markedly reducing their strength and wear resistance. Further innovative steps are now being made to improve the properties of diamond composites by reducing grain and particle sizes into the nano range. This review will cover recent developments in diamond composite materials with special emphasis on microstructural characterisation. The results of such studies should assist in the design of new, innovative diamond tools as well as leading to radical improvements in the productivity of cutting, drilling and sawing operations in the exploration, mining, civil construction and manufacturing industries.