Friction stir processing (FSP) is a novel process for refinement of microstructure, improvement of material’s mechanical properties and production of surface layer composites. In this investigation via friction stir processing, metal matrix composite (MMC) was fabricated on surface of 5052 aluminum sheets by means of 5μm and 50nm SiC particles. Influence of tool rotational speed, traverse speed, number of FSP passes, shift of rotational direction between passes and particle size was studied on distribution of SiC particles in metal matrix, microstructure, microhardness and wear properties of specimens. Optimum of tool rotational and traverse speed for achieving desired powder dispersion in MMC was found. Results show that change of tool rotational direction between FSP passes, increase in number of passes and decrease of SiC particles size enhance hardness and wear properties.