Aluminium Metal Matrix Composites (MMCs) reinforced with ceramic constituents have been developed for high wear resistance and number of Engineering applications. Though ceramic reinforcement in an aluminium matrix improves its wear resistance property, it causes high abrasive wear on cutting tools that results in poor tool-life and inconsistent part quality. In this paper, the machinability of LM.13 Al alloy reinforced with 25% by volume fraction of aluminosilicate fibers using multicoated carbides having different restricted contact (RC) type rake faces and PCBN tools is presented. A quantitative description of the mode of action of RC tools is given based on a simple model for cutting. The two tool materials were compared with respect to number of response parameters like cutting force components, tool wear, surface finish and chip form. The results show that PCBN outperforms the multicoated carbides in machining these materials. The plethora of advantages offered by RC tools in machining these materials is not very much realized.