In the present work, aluminum alloy 6061/SiC/fly ash aluminum matrix composites were welded successfully using friction stir welding process. Microstructure of weld joints was examined using optical microscope and scanning electron microscope. Mechanical properties namely, microhardness and ultimate tensile strength of the joints were studied. The results were correlated to microstructural changes caused by friction stir welding process. Microstructure in the stirred zone exhibits the uniform distribution of SiC and fly ash particles. Especially fine grains were formed on the advancing side than on the retreating side, due to the different variation between tool direction and welding direction. Higher hardness value is observed on the advancing side (132 Hv) than on the retreating side (124 Hv). Transverse tensile test of weld sample exhibits higher joint efficiency of 85.06% with respect to ultimate tensile strength. Fracture study reveals ductile mode of failure. Weld joints got fractured in heat affected zone on the retreating side, which indicates the weakest part of the weld joint. Based on thermodynamic analysis, the optimum heat input was found to be 756 J mm−1, resulting in higher strength of weld joints due to uniform distribution of reinforcement particles in the nugget zone. © 2018, Springer Nature B.V.