Metal Matrix Composites (MMCs) are pivotal in industries such as aerospace, automotive, and engineering due to their exceptional mechanical properties, including high strength, stiffness, and wear resistance. However, their heterogeneous structure and abrasive reinforcement particles present significant challenges during machining, such as excessive tool wear, surface defects, and unpredictable cutting dynamics. This comprehensive review addresses these challenges by exploring advancements in machining techniques, tool materials, and process optimization. The study systematically evaluates the influence of cutting parameters, tool coatings, lubrication strategies, and hybrid machining methods on surface integrity, tool wear, material removal rate (MRR), and chip morphology. Novel contributions include an in-depth analysis of cryogenic and Minimum Quantity Lubrication (MQL) techniques, textured tool designs, and the integration of computational simulations such as finite element modeling (FEM) to predict machining outcomes. Key findings highlight the potential of advanced coatings, optimized cutting parameters, and hybrid cooling methods to enhance machining efficiency while maintaining environmental sustainability. By bridging gaps in existing literature and offering actionable insights, this review provides a robust framework for improving the machinability of MMCs and meeting the demands of high-performance industrial applications.