Ultrasonic-assisted magnetic abrasive finishing (UAMAF) integrates the use of ultrasonic vibrations and magnetic abrasive finishing (MAF) processes to finish surfaces of nanometer order within a minute's time. The present study emphasizes the mechanism of surface finishing in UAMAF. This article reports the study of the microscopic changes in the surface texture resulting from interaction of abrasives with ground workpiece surface. In addition to the surface roughness measurement, scanning electron and atomic force microscopy were used to understand the material removal process and wear behavior during finishing and to provide a fundamental insight of the finishing in UAMAF. The observed surface texture showed that the process is an accumulation of the microscratches resulting from the interaction of abrasive cutting edges with the workpiece surface. The X-ray diffraction (XRD) analysis revealed that the SiC is induced in the workpiece surface, increasing the hardness of the workpiece up to 960 HV.