Powder bed fusion additive manufacturing processes are dependent on the characteristics of the feedstock material, given that the quality of the manufactured components is directly dependent on the quality of the metallic powder employed. Powder properties such as particle size distribution, morphology, surface condition, and flowability are critical factors influencing process stability and the final quality of manufactured parts. This study presents a systematic analysis of how these characteristics affect powder behavior during recoating, its interaction with the energy source during melting, densification mechanisms, and, consequently, the mechanical properties of fabricated components. Powder characterization for additive manufacturing applications involves the evaluation of properties such as particle morphology, flowability, packing density, specific surface area, chemical composition, and surface condition. Based on the analysis of commercial powders and relevant experimental and theoretical studies, this review examines the relationships between powder characteristics and processing parameters in powder bed fusion. In addition to powders optimized through atomization, this work also addresses powders produced by alternative manufacturing routes, highlighting their specific features, limitations, and potential for industrial applications and advanced engineering applications. The study provides a comprehensive and structured overview of the current state of the art, contributing to a deeper understanding of the role of powder properties in additive manufacturing performance.