Due to the inhomogeneous nature of the composite materials, the machinability of fiber reinforced composites is different from that of metals. In this paper, a method for characterization of the machinability of composite materials is presented. This method is based on parametric analysis of the drilling process using the Design of Experiments Approach. The project goal includes quantifying the effects of cutting speed, feed rate, tool material, and tool geometry on delamination, surface roughness, and thrust force during the drilling of carbon fiber-reinforced composites. Utilizing the aforementioned method, the optimum machinability characteristics of graphite fiber reinforced composites were predicted with 97% accuracy.