Abstract: A compact material marking system and method uses a laser to mark materials such as fabrics in environments such as stores with safety and ease of use being addressed. The system includes a housing containing the laser, gas filters, and other equipment such as fans. Material to be marked is placed into a cassette box having an opening exposing the material. The cassette is engaged with an enclosure that is coupled to the housing to allow the laser beam from the laser to enter the enclosure and to strike the material found in the engaged cassette. Fumes caused by interaction of the laser beam with the material are contained by the enclosure and drawn away to be filtered. Sensors are employed so that the laser can be activated only when the cassette is fully engaged with the enclosure.