Short alumina fiber-reinforced aluminum alloy composites were fabricated by squeeze casting, and the effects of the fiber reinforcement on the machinability of the alloy under various cutting conditions were investigated. JIS-AC8A alloy was used as the matrix metal, and two kinds of short alumina fibers were used as the reinforcements. The cutting force of the alloy was reduced by the fiber reinforcement. The lower the hardness of the fiber in the composite, the lower the cutting force of the composite. The roughness of the machined surface decreased by the fiber reinforcement under every cutting condition, and the roughness of the composites was close to the theoretical roughness. This result and in-situ observation of cutting process indicate that the fibers in the composite suppress the formation of the built-up edge during the cutting process. The machined surfaces and chip forms indicated that the fibers in the composite facilitated the shear deformation of the chips because the fibers were easily sheared by the cutting.