This study examines the creation and development of composite materials, from conventional techniques to their innovative uses in numerous industries. Composite materials that are robust, versatile, and resilient have advanced significantly, especially with the application of nanotechnology and hybrid fiber reinforcements. Composite materials are difficult to machine due to their anisotropic and non-homogeneous structure, as well as the high abrasiveness of their reinforcing parts. This typically results in the workpiece becoming damaged and the cutting tool wearing down very rapidly. On composite materials, traditional machining methods such as turning, drilling, and milling can be applied with the appropriate tool design and operating parameters. An overview of the various issues related to the conventional machining of the main types of composite materials is given in this work. This article examines novel matrix materials, forms of reinforcement, and production procedures to show how advanced metallic matrix nano composites and fiber-reinforced polymers are replacing traditional composites. Special emphasis is given to the strict manufacturing conditions in addition to the homogenous dispersion of nanoparticles and damage-free machining of fiber composite materials. The essay also discusses how sustainable alternatives, including reinforcements made of natural fibers, affect the ecosystem. This study aims to offer a comprehensive analysis and case studies.