MAX phases are a family of ternary carbide or nitride ceramics possessing a layered crystal structure and, due to their chemical bonds having a mixed covalent-ionic-metallic nature, have unique properties combining those of metals and ceramics. In this review, the formation mechanisms of MAX phases from elemental and compound powders are reviewed in detail, as the formation mechanisms are closely related to the unique properties of well-synthesized MAX phases. The stability of MAX phases in some harsh external environments is significantly influenced by the defect population, allowing the mechanisms of defect formation and migration to strongly influence their self-healing performance and radiation tolerance. The properties of MAX phases can be tailored by creating solid solutions, which have lattice distortions, and texturing which results in the preferential orientation of plate-like grains.