The silicon carbide particle-reinforced aluminum matrix composite (SiCp/Al) exhibits remarkable properties, such as low density and coefficient of thermal expansion, as well as high specific strength. Structures machined from SiCp/Al, such as thin-walled components, have found extensive applications in the aerospace and automotive industries due to their superior mechanical properties and lightweight characteristics. However, the inherent hardness of SiC particles introduces significant challenges during the processing of SiCp/Al composites. Consequently, the fabrication of thin-walled structures in SiCp/Al remains a critical and ongoing challenge. This study investigates the formation of top burrs, surface roughness, and thin-wall deformation during the micro-milling process. A three-dimensional cutting model for micro-milling SiCp/Al is established through finite element simulation to analyze material removal mechanisms and surface damage characteristics. Based on the simulation results, an optimal range of micro-milling parameters is determined. Subsequent experiments reveal that increasing the feed per tooth (fz) effectively reduces burr size. Furthermore, the interactive effects of key parameters—spindle speed (n), feed per tooth (fz), radial cutting depth (ae), and axial cutting depth (ap) —on surface roughness and thin-wall deformation are systematically investigated using the response surface methodology (RSM). The findings indicate that reducing ap and ae while increasing n and fz significantly minimizes surface roughness. Specifically, the surface roughness is reduced by 17.2% when optimized parameters are applied during micro-milling. Additionally, by appropriately adjusting ap, n, and ae while maintaining fz above 1 μm/z, it is possible to achieve thin-walled structures with minimal deformation. The results of this study provide valuable guidance for achieving high-quality surface finishes and minimizing distortion during the micro-milling of thin-walled structures in SiCp/Al composites.