<p>SiCp/Al composites, with high specific strength, low thermal expansion coefficient, and excellent wear resistance, are widely used in aerospace lightweight components. However, during machining, hard and brittle SiC particles not only accelerate tool wear but also restrict low-damage machining efficiency due to complex chip formation mechanisms and uncontrollable surface damage. Thus, focusing on low-volume-fraction SiCp/Al, this study investigates the chip formation mechanism and its impact on surface morphology, revealing how cutting parameters regulate chip morphology and surface quality to provide theoretical support for process optimization. A three-phase SiCp/Al thermo-mechanical coupling model was built, combined with 2D cutting simulations to analyse the mesoscopic mechanism of chip formation, validated via single-factor cutting experiments. Scanning electron microscopy (SEM) and image processing techniques were used to characterize chip morphology and geometric features, and the mapping relationship between cutting parameters, chip morphology, and surface damage was established. Findings show that serrated chips are easily formed during SiCp/Al cutting; the shape and distribution of SiC particles are key factors regulating chip and surface morphology, with a 6.31% error between simulation and experimental results. With increased cutting speed, chip serration intensifies; enhanced plastic flow of the aluminium matrix drives serrations to evolve into continuous shear flow, with simultaneous improvement in surface quality. As cutting depth increases, chip serration also rises; however, intensified stress concentration in the cutting zone leads to coarser serrations, along with more microcracks, particle pull-outs, and pits, causing a continuous increase in surface roughness. Optimizing cutting parameters can balance chip stability and workpiece surface integrity, providing a process basis for efficient, low-damage machining of SiCp/Al components.</p>