MMCs now a day's greatly used in aerospace, automobiles, mineral processing, marine industries. Due to abrasive characteristics for reinforced particulate machining MMCs is tough. The study evaluates microstructure, drilling & mechanical characteristics for Al7075 reinforced with varying Al2O3 content of 2%, 4% and 6% prepared from stir moulding technique were investigated for showing the cause of reinforcement on drilling and mechanical characteristics for composite. Al7075 and reinforced composites of Al2O3 samples with 2%, 4% and 6% were tested for Hardness, Bending Strength, Elongation and Drilling behaviour. Results revealed better interfacial bond & homogenous particle distribution in Al7075-Al2O3 composites. Al7075-Al2O3 composite with 6wt. % Al2O3 exhibited the high bending strength, density, elongation, hardness among the investigated specimens excellent surface quality was achieved in the drilling of the Al7075 reinforced with 4% Al2O3 composite specimen. Anova table clearly reveals determination of percentage contribution for each factor. Analysis outcome shows speed is dominating factor that affects surface roughness. Surface roughness test was carried on Taguchi's L9 orthogonal method taking three design factors like material, speed & feed thus Taguchi Optimization provides better combination of three factors. Surface roughness was analyzed on Anova and generate regression equation. Table of Anova clearly shows determination of percentage contribution for each factor. (C) 2018 Elsevier Ltd. All rights