Abstract: The work presented in this paper mainly focuses on machining of composites. In composite materials, two or more constituents are combined at microscopic level to achieve required properties. The constituents in composites are softer matrix and high strength fibers. The study for manufacturing processes of composites is necessary because mechanical properties are dependent on these processes. The machining process like drilling has effect on mechanical properties of composite materials. Though curing process residual stresses are getting induced in the composite materials during their fabrication, these stresses are not considered in this study. In this paper, the optimization of drilling parameters (Cutting speed, Feed rate, Drill point angle, Chisel edge width) in drilling of CFRP composite specimen is done using Taguchi method. The effect of variation of these parameters on residual tensile strength of specimen and surface roughness of drilled hole is studied. The optimum parameter levels based on signal to noise ratio plots are decided. The percentage contribution of each factor to the response is found out by analysis of variance. Analysis of variance shows that, speed is the factor having major contribution for the residual tensile strength followed by chisel edge width, drill point angle and feed rate. For the surface roughness drill point angle has major contribution followed by speed, feed and chisel edge width.