In recent years, there has been an intense interest in understanding the microscopic mechanism of laser induced ultrafast magnetization dynamics in picosecond time scales. Magnetization switching on such a time scale has potential to be a significant boost for the data storage industry. It is expected that the writing process will become ~1000 times faster by this technology, compared to existing techniques. Understanding the microscopic mechanisms and controlling the magnetization in such a time scale is of paramount importance at present. In this thesis, laser induced ultrafast magnetization dynamics has been studied for Fe, Co, GdFe, CoMn and Heusler alloys. A multiscale approach has been used, i.e., first-principles density functional theory combined with atomistic spin dynamics utilizing the Landau –Lifshitz-Gilbert equation, along with a three-temperature phenomenological model to obtain the spin temperature. Special attention has been paid to the calculations of exchange interaction and Gilbert damping parameters. These parameters play a crucial role in determining the ultrafast magnetization dynamics under laser fluence of the considered materials. The role of longitudinal and transversal excitations was studied for elemental ferromagnets, such as Fe and Co. A variety of complex temporal behavior of the magnetic properties was observed, which can be understood from the interplay between electron, spin, and lattice subsystems. The very intricate structural and magnetic nature of amorphous Gd-Fe alloys for a wide range of Gd and Fe atomic concentrations at the nanoscale was studied. We have shown that the ultrafast thermal switching process can happen above the compensation temperature in GdFe alloys. It is demonstrated that the exchange frustration via Dzyaloshinskii-Moriya interaction between the atomic Gd moments, in Gd rich area of these alloys, leads to Gd demagnetization faster than the Fe sublattice. In addition, we show that Co is a perfect Heisenberg system. Both Co and CoMn alloys have been investigated with respect to ultrafast magnetization dynamics. Also, it is predicted that ultrafast switching process can happen in the Heulser alloys when they are doped with heavy elements. Finally, we studied multiferroic CoCr2O4 and Ca3CoMnO4 systems by using the multiscale approach to study magnetization dynamics. In summary, our approach is able to capture crucial details of ultrafast magnetization dynamics in technologically important materials.