The modern manufacturing landscape, particularly the burgeoning field of metal additive manufacturing (3D printing), is only as good as the raw materials it uses. Metal powders are the lifeblood of these processes, and their quality directly dictates the strength, integrity, and finish of the final component. However, many standard techniques for producing metal powders yield irregular, angular, and porous particles. Enter plasma spheroidization—a revolutionary thermal processing technique that reshapes and densifies these powders, unlocking their full potential. This article provides a detailed exploration of plasma spheroidization, its scientific foundations, its role in improving metal powder quality, current research, and a balanced assessment of its advantages and risks.