The Taguchi method is used to find the optimal cutting parameters when drilling metal matrix composites (MMCs) with a polycrystalline diamond (PCD) tool. The combined effects of cutting parameters (cutting velocity and feed rate) and cutting time on three performance measures (tool wear (VBmax), the specific cutting pressure (Ks) and hole surface roughness (Ra)) were investigated employing an orthogonal array, signal to noise (S/N) ratio and the analysis of variance (ANOVA). The optimal cutting parameters for each performance measure were obtained, and the main cutting parameters that affect the cutting performance in drilling operations can be found. The relationship between the drilling parameters and the performance measures were determined using multiple linear regressions. Confirmation tests of the optimal levels with the initial machining parameters are carried out in order to illustrate the effectiveness of this approach for drilling MMCs.