Cooling of miniaturized spaces like electronic components is a major challenge to heat transfer engineers. Miniaturization of systems is an advantage and there has been a recent flourish of Micro Electro Mechanical Systems (MEMS). Hence, there is an obvious increase in demand for cooling of micro-devices and implementation of micro-channels is one of the most efficient ways for cooling applications in micro systems. The present paper discusses the applications of micro-channels, nature of flow in micro-channels, suitable materials which includes the recent developments in micro-channel material selection, fabrication aspects used for making micro-channels and the limitations which hinders a fully successful implementation of micro-channels. The use of fins and special materials recently introduced by the industry is also discussed.