Abstract: The ongoing trend toward miniaturization, high-frequency operation, and integration of inductive components, has increased the demand for enhanced performance of soft magnetic composite materials used in integrated molded inductors. Key requirements include high permeability, high saturation magnetic induction, and low loss. This paper reviews recent advancements in soft magnetic composite materials, with a particular focus on analyzing the influence of powder selection and preparation, insulation coating, compaction pressure, and annealing processes on their magnetic properties. Based on a comparative analysis of existing literature, it is evident that precise control over material microstructure is essential to achieve low loss at high frequencies. Furthermore, synergistic optimization of process parameters can significantly enhance the uniformity and stability of magnetic properties. This study provides a systematic examination of the technical framework from material preparation to performance enhancement, demonstrating that optimizing these process parameters markedly improves the overall performance of soft magnetic composites. The findings offer valuable theoretical insights and technical guidance for the structural design of inductors and the development of advanced soft magnetic composite materials.