Extended Reality (XR) has expanded the horizons of entertainment and social life and shows great potential in the manufacturing industry. Prototyping in XR can help designers make initial proposals and iterations at low cost before manufacturers and investors decide whether to invest in research, development or even production. According to the literature (54 manuscripts in the last 15 years) prototyping in XR in XR is easier to use than three-dimensional (3D) modeling with a personal computer and more capable of displaying 3D structures than paper drawing. In this comprehensive review, we systematically surveyed the literature on prototyping in XR and discussed the possibility of transferring created virtual prototypes from XR to commonly used 3D modeling software and reality. We proposed five research questions regarding prototyping in XR. They are: what the constituent elements and workflow of prototyping are; which display devices can deliver satisfying immersive and interactive experiences; how user control input is obtained and what methods are available for users to interact with virtual elements and create XR prototypes; what approaches can facilitate the connection with fabrication to ensure a smooth transition from the virtual to the physical world; and what the challenges are and what the future holds for this research domain. Based on these questions, we summarized the components and workflows of prototyping in XR. Moreover, we present an overview of the latest trends in display device evolution, control technologies, digital model construction, and manufacturing processes. In view of these latest developments and gaps, we speculated on the challenges and opportunities in the field of prototyping in XR, especially in linking extended reality to digital fabrication, with the aim of guiding researchers towards new research directions.