This paper aims to discuss the effects of liquid nitrogen cooling and drilling parameters on the driving quality of carbon fiber composites. Liquid nitrogen cryogenic and room temperature dry drilling experiments were carried out for carbon fiber reinforced composites T300 with YG10X cemented carbide drill. Root-Mean-Square of Acoustic Emission Signals (AE-RMS) of different drilling parameters was analyzed, and the corresponding signals of the hole processing quality were identified effectively. Compared with dry drilling at room temperature, the average value of AE-RMS under liquid nitrogen cryogenic drilling increased clearly with less fluctuation in the drilling phase; meanwhile it decreased and had no obvious variation at the end of the drilling phase. Furthermore, the hole outlet delamination factor as well as burr decreased. When vf=30mm/min, the hole outlet delamination factor was reduced by 9.2%, and the hole wall surface quality was improved. Compared with dry drilling at normal temperature, liquid nitrogen low temperature drilling has the following characteristics: AE-RMS increases during the drilling phase, but its fluctuation amplitude decreases. Defects such as burrs and tears at the hole exit are reduced. The SEM observation shows that the fracture of the fiber under low temperature drilling of liquid nitrogen is significantly reduced, the surface of the resin coating is neat and smooth, and the interface between the transverse fiber and the resin has less peeling and the surface quality of the hole wall is improved.