Fiber-reinforced composites have established as a high-performance composite of modern advanced structures in various sectors such as automotive, aerospace, and marine industries. Non-conventional machining processes are preferred for the ease of manufacturing operations, which incorporates the machining of high strength and anisotropic material. Non-conventional manufacturing processes produce complicated shaped profiles and better surface characteristics. Abrasive water jet (AWJ) machining is an emerging technology that offers an excellent alternative among the various advanced machining processes due to its process capabilities and excellent machining quality. AWJ machining has fascinated immense attention in the fields of fiber-reinforced composite materials to produce intricate industrial components and attracted the researchers and production industries. It has become well-known in all key areas of researches. Over the past 30 years, lots of research work has been carried out to describe the machining performances among the studied process parameters. This paper reviews the research progresses and integrated functions of AWJ machining in terms of mechanism and machining performances, which includes aspects such as mathematical modeling and optimization. AWJ machining procedure and performance capability are reviewed and depicted in detail. Also, a comprehensive conclusion of this review, along with future perspective, is explored subsequently. The current review work will help future researchers for the proper selection of different FRP material composite compositions and AWJ machining parameters to achieve better performances. The collection of this review literature will also support the production operations in the future.