Copper matrix composite reinforced with SiC exhibits high electrical and thermal conductivity, as well as superior mechanical properties, making it a potential candidate for thermal management applications. There has been rapid progress in the understanding of Cu–SiC metal matrix composites during the past decade. To accomplish this, powder metallurgy, casting, selective laser melting, composite electroforming technology, and electrodeposition methods have been employed. The optimum cutting conditions for fabrication of Cu–SiC metal matrix composites are still being explored. In recent years, friction stir processing (FSP) has become increasingly popular in the fabrication of composites. FSP is capable of microstructural engineering in Cu–SiC systems. In light of the fact that the electrical/thermal conductivity and mechanical performance of Cu–SiC composites depend on microstructural characteristics such as SiC distribution, grain size, grain orientation, density of dislocations, and bulk density, it seems important to study the effect of manufacturing conditions on microstructure in detail. In this study, the influence of FSP parameters such as rotational and traversal speeds, the number of FSP passes, and the pin profile as well as the characteristics of SiC powder are discussed in detail with regard to macro- and microstructure, hardness, strength, tribological, and electrical properties of FSPed Cu–SiC composites.