This study analyses the influence of adding different wt% of Y₂O₃ content on the microstructural, mechanical, and tribological performance in hybrid ceramic reinforced Al6061-based composites. Hybrid composites reinforced with fixed wt% of ZrO₂ (5 wt%) and TiO₂ (8 wt%) along with varying Y₂O₃ content (0–6 wt%) were fabricated using the stir casting technique. Micro-hardness and dry sliding wear behaviour were evaluated using Vickers testing and a pin-on-disc system considering diverse sliding loads and speeds. To systematically optimize the tribological parameters, L16 Taguchi design of experiments coupled with ANOVA was employed. The results showed that increasing hybrid reinforcements content causes an extensive improvement in hardness and reduces wear rate owing to improved load-bearing capacity and microstructural refinement. Furthermore, the study establishes a clear relationship between reinforcement distribution, tribolayer formation, and dominant wear mechanisms. The optimized parameter combination identified through statistical analysis provides improved tribological performance. Overall, this work offers a comprehensive framework for designing high-performance hybrid aluminium composites for structural applications.