Particle reinforced metal matrix composites have been widely used in automotive, aerospace and military and others fields due to their excellent properties such as high modulus, high strength and good wear resistance. However, in the cutting process of it, due to the presence of reinforced phase particles, the tool wear is serious, leading to the formation of debris and machined surface defects. Finite element simulation can realize the analysis of stripping and breakage of particle, and give the other microscopic details. It is an important supplement to the research of cutting experiment. In this paper, the research progress of three-dimensional finite element simulation of machining of particle reinforced composites is reviewed. The latest research of geometric model, interface model, constitutive model, meshing and boundary condition processing is introduced. The existing problems and development direction are discussed. The research results are helpful to promote the research of three-dimensional finite element simulation of cutting of particle reinforced composite, better reveal the cutting mechanism, and provide theoretical basis for the optimization of process parameter.