The present work demonstrates the development of SiC/TiS2/AlSi12Cu hybrid functionally graded composite using centrifugal casting and examines its microstructural, mechanical, and tribological properties. A gradient distribution of reinforcement particles was observed with the outer region being particle-rich. EBSD analysis confirms microstructural refinement owing to titanium’s grain refining properties and the formation of θ-Al2Cu intermetallic phase. The outer layer of the composite attained a maximum hardness and tensile strength of 93 HB and 202 MPa respectively, which was increased by 7.5% and 8.2%, 20.4% and 13.8%, 22.5% and 44.5% in middle, inner, and as-received alloy respectively. Tribological properties were assessed via dry sliding pin-on-disk tribometer with various process parameters such as load (10–40 N), velocity (1–4 m/s) and distance (500–2000 m), optimized using response surface methodology. The higher wear resistance was attained by the optimized process parameters of 16 N load, 1.6 m/s velocity, and 804 m distance. Results indicated increased material loss with higher load, sliding distance, and velocity, but with enhanced wear resistance in the outer zone. Worn surface analysis revealed deeper grooves, delamination, particle pull-out, and wear tracks under severe conditions. The study emphasizes the composite’s potential for high wear applications, linking its microstructural features to its superior wear behavior.