Abstract This study aims to examine the impact of agricultural waste materials—specifically silicon carbide (SiC) and palm sprout shell ash (PSSA)—on the mechanical properties, including density, porosity, tensile strength, compression strength, impact strength, and hardness, as well as the tribological behavior of Al-Cu-Mg alloy-based HRAMMCs. Parametric optimization was conducted on HRAMMCs to predict the effect of input constraints on the performance of the composite, considering the weight percentage of SiC, PSSA, and ultrasonic-assisted stirring time. Taguchi’s L9 orthogonal array was used for the design of experiments (DOE), and the composites were fabricated accordingly. Their physical, mechanical, and tribological properties were determined experimentally. Taguchi-based Grey Relational Analysis for multi-optimization highlighted the potential of the HRAMMCs, with a density of 2.545 g cm−3, porosity of 5.810%, ultimate tensile strength of 341 MPa, flexural strength of 321 MPa, compressive strength of 394.016 MPa, Vickers hardness of 136.883 HV, wear rate of 6.88E-12 m3 m−1, and a coefficient of friction of 0.397. ANOVA shows that the developed mathematical model is a better fit for examining the impact of various factors on the GRG of and corresponding properties of developed HRAMMCs, Indicating the R2 value of the developed model is 99.33% (0.9933). The 2 wt% SiC, 2 wt% PSSA, and a stirring time of 7 min are optimal parameters for the present HRAMMCS; to reduce porosity, wear loss, and the coefficient of friction while increasing, ultimate tensile strength, compressive strength, and Vickers microhardness. Moreover, the examination of the tensile and impact fracture surfaces and worn surfaces was carried out using SEM analysis of the alloy and composite produced under the optimal experimental conditions. The results of the fracture surface analysis indicated that the failure of both tensile and impact fractures was due to an amalgamation of ductile and brittle behaviors. The composites exhibited lower ductility than that of the base alloys. A study of the wear mechanism revealed that it was a mixture of adhesive and abrasive wear mechanisms. The SiC and PSSA ceramic reinforcements demonstrate higher hardness compared to the alloy, which restricts the fluid-like movement of the matrix. When these reinforcements were added to the alloy, they substantially decreased the occurrence of severe delamination and the formation of adhesive wear particles.