This paper delivers a detailed review of the influence of material and process variables on the microstructure, mechanical and tribological characteristics of functionally graded aluminum matrix composites (FGAMCs) produced by the ex-situ centrifugal casting method from previous studies. Also, the basic principle and classification of centrifugal casting to produce FGAMCs are illustrated. The ceramic reinforcement particles are classified based upon their uses in the processing of FGAMCs through the ex-situ centrifugal casting technique. In addition, using the linear regression model, an effort has been made to optimize the material and process variables to get enhance the mechanical properties. It is seen from the optimization while mold preheating temperature ranges 250–350 °C, centrifugal speed kept between 600 and 1300 rpm, pouring temperature in the range of 740–760 °C having reinforcement particle of 10–15 wt%, with an average particle size of 18–50 µm yield the maximum of hardness and tensile strength. This paper aims to provide direction to future researchers to develop advanced material using this route and thus, to boost technological growth.