Laser-assisted turning (LAT) involves locally heating a rotating workpiece using a focused laser beam before the removal of material. A key aspect in optimising productivity with laser-assisted turning is understanding the thermal relationship between laser heating, the improved material removal rate, and machinability. Consequently, in this paper, a thermal heating and laser-assisted turning finite element model and experiments were conducted to assess the machinability of an Al/SiCp MMC workpiece, considering the circumferential location of the laser beam from the cutting point. The results confirm that laser power and cutting velocity influence the temperature profile from the laser spot to the tool point and the heat-affected depth. Positioning the cutting tool closer to the laser spot effectively reduces the Von Mises stress during cutting at higher cutting temperatures. At the same time, the experiment indicates an increased risk of directly heating the tool, which can affect the integrity of the cutting tool. The work further reveals that at specified cutting velocities, lower specific cutting energy improves the tool condition and surface quality of the machined parts. Based on a range of material removal rates and laser-specific energy density, a new criterion for optimal laser-tool circumferential distance was determined. Establishing this distance can act as a guide for the laser-assisted turning of Al/SiCp metal matrix composites and potentially other materials.