A system and a method of fabricating a three-dimensional object on a substrate includes adding material layers incrementally and consolidating the layers by using ultrasonic vibrations and pressure. The layers are placed in position to shape the object by a material feeding unit, and they come in various forms, including flat sheets, segments of tape, strands of filament or single dots of material. The material may be plastic or metallic, and composition may vary discontinuously or gradually from one layer to the next, creating a region of functionally gradient material. The invention permits the construction and repair of dense objects, including fiber-reinforced composites and aerospace structures. Excess material may be removed one or more layers are bonded, including following end of the process after the final object is fabricated. The layers are fed sequentially and additively according to a layer-by-layer computer-model description of the object, which is generated by a computer-aided design/manufacturing (CAD/CAM) system. Ultrasonic welding equipment applicable to the invention preferably includes an ultrasonic generator, a transducer, a booster and a head unit or sonotrode.