This study was undertaken to emphasize the influence of Sn and Bi addition on the machinability of Sr-modified, grain-refined, and heat-treated Al–Si B319 and 396 alloys. Drilling and tapping tests were conducted to examine the cutting forces, tool life, tool wear, built-up edge evolution, and chip shape. Microstructures were examined using optical and electron microscopy. Drilling test results show that the B319.2 alloy with 0.15%Sn yields the longest drill life, i.e., twice that of the B319.2 alloy containing 0.5%Bi, and one-and-a-half times that of the B319.2 alloy containing 0.15%Sn + 0.5%Bi. The presence of 0.5%Bi in the B319.2 alloy causes a deterioration of drill life (cf., 1101 holes with 2100 holes drilled in the B319.2 alloy containing 0.15%Sn). The α-Fe phase in the 396 alloy produces the highest number of holes drilled compared with alloys containing sludge or β-Fe. The presence of sludge decreases the drill life by 50%. Built-up edge (BUE) measurements and optical photographs show little change in the BUE width for different numbers of holes except for the B319.2 alloy containing 0.5%Bi, which shows a slightly lower width (0.166 mm) compared with that containing 0.15% Sn (0.184 mm) or 0.15%Sn + 0.5%Bi (0.170 mm).