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The demand for tailored properties of the materials and lightweight characteristic accelerates the development of metal matrix composites (MMCs). The conventional methods of MMCs development require several post-processing techniques like a microstructural modification or grain refinement, to fulfil the desired requirement of specific applications. In this regard, friction stir processing (FSP) can be proved as an alternative, not only for microstructural modification but also utilized for the development of surface composites. This solid-state approach is an environment-friendly process. It also refines the grain structure of the alloys and composites, which in turn, enhances the mechanical properties such as tensile strength, hardness and fatigue strength. The present work aims to focus on the state of the art research in the field of friction stir processing and to highlight its key points and merits over traditional methods. The present work also emphasizes the developments in friction stir processing, especially on aluminium and magnesium-based alloys and composite and futuristic approaches adopted in various industrial application. • The present work focusses on friction stir processing and highlights the key points and merits of FSP. • It also emphasis the developments in FSP work especially on aluminium and magnesium alloys and composite. • The effect of process parameters related to heat generation, material flow and tool pin profile is explored. • Microstructural, mechanical characterization, and grain refinement are some keen point of the present work. [ABSTRACT FROM AUTHOR]