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• Several new combinations of metal matrix composites have been produced in recent decades. • Aluminum composites are considered among the most advanced structural materials, classified as metal matrix composites (MMCs), due to their superior properties for automotive and aerospace applications. • Al MMCs were synthesized using different fabrication methods. The formations of stable reinforcement particles in the composites resulted in superior mechanical and wear properties for Al MMCs. • Recent advances in processing, microstructure, wear, and mechanical properties of Al matrix composites increased with innumerable types of particles are covered in this review paper. • At the end of the study, future directions for these composites will also be discussed. • These articles outline the production process and highlight the mechanical and wear properties of AMCs with various reinforcements. • A brief discussion of the advantages and limitations of different methods is provided. • The choice of a fabrication process is mainly dependent on the required quality, cost, and efficiency of the process. • The technique for improving UTS, impact resistance, and hardness has been thoroughly explored. • Orowan strengthening, along with the load-bearing effect, strongly affects the strength of the composites. • The effect of various parameters on the wearing characteristics of AMCs was also explained in detail. • The mechanisms are briefly discussed, along with relevant research papers on the wear surfaces. • This review aids in identifying the research background and challenges associated with the processing of AMCs, despite their good performance in current applications. Aluminum matrix composites (AMCs) have received attention over the past decades in the automotive and aerospace industries due to their high strength, low weight, and wear resistance. This review presents a detailed analysis of the microstructure, mechanical, and tribological properties of AMCs. It begins with the primary fabrication processes, including stir casting, liquid-state processing, squeeze casting, and solid-state processing. The review then explores the correlation between microstructural properties and processing conditions, including reinforcement distribution, phase development, porosity formation, grain refinement, and interfacial bonding. Particular attention was given to the effect of nanoparticles and hybrid reinforcement on the strengthening mechanism, microstructure, and mechanical properties of AMC. The strengthening mechanisms, Orwan strengthening, load transfer, grain boundary strengthening, and thermal mismatch were examined to explain variation in wear properties, tensile strength, and hardness. Recent advances in processing, microstructure, wear, and mechanical properties of Al matrix composites have increased, with innumerable types of particles covered in this review paper. At the end of the study, future directions for these composites will also be discussed.