Higher tool wear and inferior surface quality of the specimens during machining restrict metal matrix composites’ application in many areas in spite of their excellent properties. The researches in this field are not well organized, and knowledge is not properly linked to give a complete overview. Thus, it is hard to implement it in practical fields. To address this issue, this article reviews tool wear and surface generation and latest developments in machining of metal matrix composites. This will provide an insight and scientific overview in this field which will facilitate the implementation of the obtained knowledge in the practical fields. It was noted that the hard reinforcements initially start abrasive wear on the cutting tool. The abrasion exposes new cutting tool surface, which initiates adhesion of matrix material to the cutting tool and thus causes adhesion wear. Built-up edges also generate at lower cutting speeds. Although different types of coating improve tool life, only diamond cutting tools show considerably longer tool life. The application of the coolants improves tool life reasonably at higher cutting speed. Pits, voids, microcracks and fractured reinforcements are common in the machined metal matrix composite surface. These are due to ploughing, indentation and dislodgement of particles from the matrix due to tool–particle interactions. Furthermore, compressive residual stress is caused by the particles’ indentation in the machined surface. At high feeds, the feed rate controls the surface roughness of the metal matrix composite; although at low feeds, it was controlled by the particle fracture or pull out. The coarser reinforced particles and lower volume fraction enhance microhardness variations beneath the machined surface.