Additive manufacturing (AM) is now a widely researched manufacturing technology in the past two decades to adopt in industry for its added advantage of customization and adopting complex geometries with comparatively low buy-to-fly ratio. Carbon fiber reinforced polymer (CFRP) composite has found applications in different high-performance industries for its greatest benefit of high strength-to-weight ratio. Additive manufacturing of CFRP composite (AM-CFRP) opens up the possibility of enhancing mechanical strength using different printing orientations and enables producing complex shapes maintaining sustainable manufacturing perspective. However, Limitation of AM parts of having surface irregularities and questionable dimensional accuracies. To use AM-CFRP parts in high precision assembly or industrial applications, post processing machining is often required to meet the customers’ specification of geometrical tolerances and acceptable surface finish. In this study, the influence of AM parameters on machinability of AM-CFRP composite has been evaluated using finite element analysis (FEA) based numerical simulation. The slot milling operation was simulated with a tungsten carbide end milling tool and AM-CFRP workpiece with four different printing directions, i.e., 0°-90°, 45°-135°, 0°-90°-45°-135°, two different layer widths, i.e., 50 µm and 100 µm, and two in-fill patterns, i.e., solid and perforated structures. The machinability of the 3D printed CFRP has been analyzed based on cutting forces, stress at first contact and maximum stress generation, and temperature increases at the interface during slot milling of AM-CFRP under different AM parameters. Evolution of failure mechanisms of AM-CFRPs under various machining conditions, such as, delamination, matrix rupture etc., have been discussed and chip and burr formation mechanisms have been analyzed. Finite Element analysis (FEA) package ABAQUS/Explicit was used to model 3D micro slot milling operation of AM-CFRP workpiece with appropriate damage and constitutive models, such as, damage initiation, progression and cohesion in adjacent passes and layers.