This study explores the precision micro-machining of CoCrFeNiAlX short fiber-reinforced 7A09 aluminum matrix composites, focusing on the interplay between machining parameters and composite properties. The investigation scrutinizes the influence of vibrational amplitude, oscillation frequency, penetration depth, fiber orientation, and aluminum concentration on machining dynamics. Findings reveal that enhancing the X-axis vibrational amplitude to 80 μm is associated with a decrease in machining force, which then rises after reaching a threshold. In contrast, maintaining the Y-axis amplitude below 90 μm significantly increases the machining force. Higher amplitudes and frequencies were observed to reduce machining forces by up to 57% at an ultrasonic frequency of 15 kHz. Employing ultrasonically assisted vibration cutting (UEVC) culminated in a substantial 72% decrease in machining forces when fibers were optimally oriented at 45°. The study also identifies a direct correlation between the cutting temperature and both the vibrational amplitude and penetration depth, with the Y-axis amplitude having a more significant impact, causing a 55% variation in temperature. An increase in frequency initially lowers the cutting temperature, with the lowest temperature of 92 °C achieved at 5 kHz, while the peak temperature occurs at a machining depth of 60 μm. Temperature profiles indicate an initial rise with increased fiber orientation, followed by a decline. A slight increase in aluminum concentration marginally raises the cutting temperature. Furthermore, UEVC is found to produce a parabolic residual stress distribution, where amplitude and penetration depth determine the peak stress levels, and higher frequencies contribute to stress reduction. Fiber orientation also affects residual stress, with proper alignment reducing compressive stress and misalignment increasing it. The lowest point of residual compressive stress is detected in the Al0.6 fiber composite, while the peak is observed in the Al1 composites.