For brake and clutch components of aircraft vehicles which require higher mechanical strength and wear resilient, light-weight aluminium composites were developed infusing solid lubricant. In this study, hybrid composites were developed using powder metallurgy route with aluminum alloy AA356 and various amounts of zirconium oxide (ZrO2) (0, 5, 10, 15, and 20 wt.%) as reinforcements. A solid lubricant hexagonal boron nitride (hBN) at a fixed 5 wt.% is considered. Following the appropriate ASTM guidelines, the specimens were mechanically characterized by measuring their density, porosity, micro-hardness, compression strength, impact strength, and flexural strength, among other properties. The findings showed that the composites' mechanical and physical behaviour were greatly affected by the inclusion of ZrO2. Porosity increased as a result of particle clustering and interfacial voids, while density increased gradually as ceramic content increased. Consistently increasing ZrO2 addition led to micro-hardness improvements; at 20 wt.% reinforcement, values reached their maximum, indicating that the hard ceramic phase contributed to better surface resistance. The best balance between particle reinforcement and matrix continuity was suggested by the compression and flexural strengths peaking at 15 wt.% ZrO2. However, when the addition was raised to 20 wt.%, brittleness and porosity began to marginally deteriorate. Unreinforced and lower ZrO2 composites had superior toughness in impact, whereas materials with a higher content had a poorer energy absorption capacity. The 5 wt.% hBN improved fracture arresting capabilities and helped load transmission over the interface. Inclusion of hBN provides solid-lubricating tribofilm formation that enhances the tribological performance. This study reveals that AA356/ZrO2-hBN hybrid composites have good hardness and compressive strength improvements, with 15 wt.% ZrO2 being the best composition with good strength, toughness, and wear resistance.