Laser therapy uses low-level lasers that emit coherent light to induce biological effects in tissues. It was first developed in the 1960s and approved by the FDA in 2002 to treat carpal tunnel syndrome. Lasers are classified based on their power output and potential hazards, with classes 1 and 2 being safe for therapeutic use. Common types include helium-neon and gallium arsenide lasers. Physiological effects include reducing pain and inflammation, promoting tissue healing, and recovery from nerve injuries through various cellular mechanisms like increased ATP and growth factor production.