The 8086 microprocessor supports 8 types of instructions: data transfer, arithmetic, bit manipulation, string, program execution/transfer, processor control, iteration control, and interrupt instructions. Data transfer instructions move data between registers, memory, ports. Arithmetic instructions perform operations like addition, subtraction. Bit manipulation instructions perform logical, shift, rotate operations. String instructions operate on groups of bytes/words in memory. Program execution instructions transfer program flow, including conditional jumps. Processor control instructions set processor flags. Iteration control instructions loop a block of code a number of times. Interrupt instructions call interrupt handlers during execution.