Friction stir processing (FSP) is a solid-state processing technique, in which a rotating tool composed of pin and shoulder is rotated and slowly plunged by applying vertical force into the groove of the plate to be processed. The pin and shoulder surface together generate heat due to friction which plasticizes or softens the material to be processed and the material in front of tool is then extruded around pin and mechanically mixes it together to form a processed composite. Green aluminum matrix composites (GAMC) are composites which are reinforced with recyclable or waste materials red mud, rice husk ash, ground nut shell ash, and bagasse ash particles. The number of tool rotational speed and transverse speed plays a vital role for heat generation and homogeneous mixing of materials during processing and microstructure and mechanical properties are also varied of the same in the composite. There is a wide range of application of friction stir processing of aluminum alloy, i.e., automobiles, aerospace, shipbuilding, construction etc. Aluminum alloy has very good resistant to stress corrosion cracking resistance, high strength-to-weight ratio, good machining properties, stiffness, and good resistance to fatigue. It has the property to be friction stir welded and friction stir processed. The reinforcement, tool design, and FSP process parameters have an effect on the mechanical and microstructure properties. The combined and individual effect of tool design and process parameters are discussed in this paper. The main aim of this paper is to provide a comprehensive literature survey of the works conducted by previous researchers in fabrication of green aluminum matrix composite by friction stir processing of aluminum alloy.