In present study, Red mud, an industrial waste, has been utilized as a reinforcement material to fabricate Aluminium 6061 matrix based metal matrix composite. Taguchi L18 orthogonal array has been employed for fabrication of composite castings and for conducting the tribological experimentation. ANOVA analysis has been applied to examine the effect of individual parameters such as sliding condition: dry and wet, reinforcement weight fraction, load, speed, and sliding distance on specific wear rate obtained experimentally. It has been found that tensile strength and impact energy increases while elongation decreases, with increasing weight fraction and decrease in particle size of red mud. The percentage contribution of the effect of factors on SWR is Sliding condition (73.17), speed (7.84), percentage reinforcement (7.35), load (5.75), sliding distance (2.24), and particle size (1.25). It has also been observed that specific wear rate is very low in wet condition. However, it decreases with increase in weight fraction of reinforcement, decrease in load and sliding speed. Al6061/red mud metal matrix composites have shown reasonable strength and wear resistance. The use of red mud in Aluminium composite provides the solution for disposal of red mud and can possibly become an economic replacement of Aluminium and its alloys.