Friction stir welding (FSW) is established as one of the prominent welding techniques to join aluminium matrix composites (AMCs). It is a solid state welding process, takes place well below the melting temperature of the material, eliminates the detrimental effects of conventional fusion welding process. Although the process is capable to join AMCs, challenges are still open that need to be fulfill to widen its applications. This paper gives the outline of the friction stir welding technique used to join AMCs. Effect of process variables on the microstructure and mechanical properties of the joints, behavior of reinforcing materials during welding, effect of tool profiles on the joint strength are discussed in detail. Few improvements and direction for future research are also proposed.