Metal matrix composites (MMC) introduced special features such as resistance to wear and high strength to weight ratio and these characteristics categorized them as difficult-to-cut materials in the field of machining. In the current paper, a novel study on the cutting fluid emulsion 5% role in the machinability of a magnesium-based metal matrix composite reinforced by silicon carbide (SiC) particles is presented. AZ91 magnesium alloy, with nominal composition Mg-9Al-1Zn, composites were made using stir casting method. Then, the composite samples were machined and the cutting parameters such as cutting speed, feed rate and side cutting edge angle were varied to assess their effects on the wear and surface roughness. To measure and analyze the wear, optical and scanning electron microscope (SEM) were used. Also, elemental analysis through energy-dispersive X-ray spectroscopy (EDS) was accomplished. Surface roughness of machined samples were measured by a profilometer and 3D surface topography. Results of SEM and EDS images indicated that SiC particles included in the composites act as grinders and remove the surface of tool even in a short time because of the severe abrasion. Additionally, surface of machined MMCs contains some defects such as cracks, broken SiC, and unwanted deformations. Using cutting fluid emulsion 5% enhanced the tool life as well as the surface quality remarkably for different cutting speeds, feed rates and cutting edge angles although finished surface of the samples were oxidized. Also, the cutting fluid considerably reduced the amount of adhered materials on the flank face.