The technique of pulsed fiber-laser tangential profiling and radial sharpening of bronze-bonded diamond grinding wheels is studied theoretically and experimentally. The mechanisms for laser tangential profiling and radial sharpening of bronze-bonded diamond wheels are theoretically analyzed, and the four key processing parameters that determine the results of laser truing and dressing, including laser power density, overlap ratio of laser spot, laser scanning track line overlap ratio, and number of laser scanning cycles, are summarized and proposed. Furthermore, the effects of these four key parameters on graphitization-damaged layer of grains, sharpness of cutting edge graims, surface smoothness of bond, and mean protrusion height of the diamond grains after laser processing are experimentally studied. The ideal values of the laser power density, overlap ratio of laser spot overlap ratio, laser scanning track line, and number of laser scanning cycles are found under current experimental conditions.