Ceramics reinforced aluminum metal matrix composites are mostly used in automobile, aerospace, and its related industries because of its superior mechanical and tribological properties. In the present work, the drilling studies of LM25 aluminum-based composite is selected to carry out the experiments. Novel industrial waste red mud particles are used as the reinforcement material, which can reduce the environmental hazards and the problem of disposing. The effect of three input factors such as speed, feed, and point angle over the output response such as surface roughness, vibration, and power consumption are studied using L27 orthogonal array. The optimal factor settings for each output performance are determined by employing the Taguchi method. Further, the analysis of variance is also performed for each parameter to know the significant contribution. However, in order to minimize the responses simultaneously, multi-objective optimization by ratio analysis based entropy method is adopted and the optimum levels of the drilling process are found. When the optimum parametric setting is used, the surface roughness is reduced by 13.63%, power consumption by 9.1%, and vibration by 15.14%.