A microstructure analysis is carried out to optimize the process parameters of a randomly oriented discrete length hybrid carbon fiber reinforced carbon matrix composite. The composite is fabricated by moulding of a slurry into a preform, followed by hot-pressing and carbonization. Heating rates of 0.1, 0.2, 0.3, 0.5, 1, and 3.3°C/min and pressures of 5, 10, 15, and 20 MPa are applied during hot-pressing. Matrix precursor to reinforcement weight ratios of 70:30, 50:50, and 30:70 are also considered. A microstructure analysis of the carbon/ carbon compacts is performed for each variant. Higher heating rates give bloated compacts whereas low heating rates give bloating-free, fine microstructure compacts. The compacts fabricated at higher pressure have displayed side oozing of molten pitch and discrete length carbon fibers. The microstructure of the compacts fabricated at low pressure shows a lack of densification. The compacts with low matrix precursor to reinforcement weight ratios have insufficient bonding agent to bind the reinforcement whereas the higher matrix precursor to reinforcement weight ratio results in a plaster-like structure. Based on the microstructure analysis, a heating rate of 0.2°C/min, pressure of 15 MPa, and a matrix precursor to reinforcement ratio of 50:50 are found to be optimum w.r.t attaining bloating-free densification and processing time.