In fabrication of parts in auto and aero segments, the use of ceramic (SiCp, Al2O3p) reinforce aluminium alloy found to be increased than that of steel and cast iron. This matrix-reinforced alloy has high strength to weight ratio along with higher modulus and hardness, lower thermal coefficient of expansion, and improved tribological properties. This paper aims to study the effect of dispersing of soft lubricant of molybdenum disulphide (MoS2p) individually and along with hard ceramic SiCp in Al-Si10Mg metal matrix composites. In this extent, this paper presents the fabrication, characterization and machinability study of newly developed two metal matrix composites and one hybrid matrix composites by the addition of both hard ceramic SiCp and soft solid lubricant molybdenum disulphide (MoS2p). The samples such as Sample 1:AlSi10Mg/3SiCp, Sample 2:AlSi10Mg/2MoS2p and Sample 3:AlSi10Mg/3SiCp/2MoS2p is prepared using automated stir-casting machine. The particle reinforcement of hard/soft are added to matrix AlSi10Mg in terms of weight percentage. After density and hardness measurement, the samples are subjected to machining and the responses are optimized by using response surface method. From the optimal points of investigation, addition of MoS2P along with SiCp in sample 3 prevent the entrapment of hard particles in tool/work piece interface for both sharp and dull thus tool life is increased 14 min that of 10 min for sample 1. The controlled formation of built-up edge protects the cutting edge and acts as sacrificial coating to improve the tool life for sample 3 that of sample 1. Also surface morphology of flank face reveals abrasive and adherence are the main wear mechanism at the time of machining. Further, the investigation results reveal that for industrial applications the addition of solid lubricant MOS2p alone to aluminium does not help to improve lubrication properties of aluminium alloy.