This present study investigated the impact of incorporating boron nitride (BN) and vanadium carbide (VC) reinforcements on various properties of friction stir processed (FSP) AA6061 alloy composites, focusing specifically on grain structure, thermal conductivity, electrical conductivity, and compressive strength. The findings indicate that VC more effectively refines the grain structure of the AA6061 alloy during FSP compared to BN. The inclusion of BN particles in the metal matrix composites resulted in a decrease in both thermal and electrical conductivity. In contrast, the addition of VC particles led to an increase in both thermal and electrical conductivity. The AA6061/VC composite material exhibited the highest thermal conductivity among all composites tested. The electrical conductivity of the hybrid-composite AA6061/30%BN+70%VC showed a slight reduction, measuring only 2.8% lower than the base alloy AA6061. The mono-composite AA6061/VC exhibited a marginal decrease in thermal conductivity, with a measured value only 7.5% lower than the conventional alloy AA6061. However, the mono-composite AA6061/BN displayed a more significant decline, exhibiting a loss of 14.7% and 13.9% in electrical and thermal conductivity, respectively. The composite material comprising 30% BN and 70% VC reinforcement demonstrated the highest compressive strength compared to all other tested composites. The observed percentage enhancement in the mechanical properties of mono and hybrid composites, compared to the parent AA6061 alloy, ranged from 17.1% to 31.5%.