Machining of fiber reinforced polymer (FRP) composites is a major secondary manufacturing activity in the aircraft and automotive industries. Traditional machining of these composites is difficult due to the high abrasiveness nature of their reinforcing constituents. Almost all the traditional machining processes involve in the dissipation of heat into the workpiece which can be resulted in damage to workpiece and rapid wear of the cutting tool. This serious issue has been overcome by water jetting technologies. Abrasive waterjet machining (AWJM) is a nontraditional method and one of the best options for machining FRPs. This paper presents a review of the ongoing research and development in AWJM of FRPs, with a critical review of the physics of the machining process, surface characterization, modeling and the newer application to the basic research. Variable cutting parameters, limitations and safety aspects of AWJM and the noise related issues due to high flow rate of water jet will be addressed. Further challenges and scope of the future development in AWJM are also presented in detail.