This paper discusses the advances in CO2 waveguide laser technology and compares the output characteristics of the waveguide laser with those of the conventional CO2 laser both operating at 10.6 micron. Since the first demonstration of the waveguide laser in 1972 significant strides have been made towards the achievement of an operational unit that can be used for many electro-optical systems application. Especially due to operation at high pressures a large tunability (>1 GHz) can be obtained and applications such as tunable sources for satellite communication and doppler tracking radar appear now feasible. Beam confinement of the mode to narrow capillaries made of high strength dielectric materials gives the laser a new dimension in terms of rigidity and miniaturization. Applications appear now feasible that have thus far been a domain of conventional light sources. Sealed-off lasers are now available that do not require a gas supply and a vacuum pump. High stability waveguide lasers have been built with both excellent short-term and long-term stabilities comparable to the best conventional lasers. Thus, compact coherent receivers can be built which are superior to straight detection receivers. With this potential it is no surprise that the waveguide laser is finding every day many new applications for which lasers have not been considered.