The usage of aluminium based metal matrix composite (MMCs) materials has been increasing day by day in the areas of aerospace, automotive, marine, recreational, construction industries etc. due to its superior characteristics over unreinforced alloy. The conversion of these MMCs into industrial products is always associated with machining. The hard reinforcing particles in the MMCs pose a continued challenge to the machining research group. Though a lot of research work done for the machining of MMCs, still there is a scope for study due to the arrival of new cutting tools in the industry. The main objective of this paper is to study the effect of Multi-layered Coated Carbide Insert (CNMG 120408 TN 8135 FR) on machinability of Al-6063 matrix reinforced with Al2O3 particles. Composites are fabricated using stir casting technique for reinforcement volume fraction of 15% Al2O3 particles. Based on Taguchi L9 orthogonal array, three levels of cutting speed, feed rate and depth of cut are considered during the experimentation. Machinability index such as surface roughness and the tool wear are analyzed to study the machining performance. The experimental results were analysed by analysis of means using Minitab software by which optimal combination of cutting parameters, 100m/min of cutting speed, 0.103 mm/rev of feed, 0.6mm depth of cut are obtained. The experimental results show that the feed rate significantly affects the surface quality of machined surface. Tool wear analysis shown that the removal of coating only occurs on the tool gradually and there is almost no wear observed on the tool. © Research India Publications.