Automated Fiber Placement (AFP) process along with Out-of-Autoclave (OOA) prepreg technology are important to reducing costs involved in making primary aero-structures ranging from a simple flat parts to intricate three-dimensional parts. This combination promises fast, reliable and cost-effective manufacturing. Avoiding the autoclave during the curing process not only reduces the overhead costs but also opens up opportunities for the use of light weight tooling. However, lack of experience in using the AFP machine with the OOA prepreg and the susceptibility of having voids, resin-rich areas in a part manufactured by the OOA prepreg are the major roadblocks, preventing the aerospace industry from implementing this combination of AFP and OOA prepreg technologies. This dissertation aims to characterize the mechanical parameters of two different OOA prepreg materials using the AFP process. Using the same OOA prepreg material, the mechanical properties and the quality of the laminates manufactured by the AFP process will be compared with the samples made by the Hand-Lay-Up process, with and without the application of external pressure during the curing process. The microstructure of all samples will be analyzed for voids, resin-rich areas and resin-starved areas. A cost model will also be generated to understand the economics associated with the AFP process and the OOA curing technique.