Abstract: This paper aims to study on the feasibility of micron size hole manufacturing using micro Electric Discharge Machining (Micro-EDM). Main and auxiliary unit of the micro-EDM machine tool and their functions are described in some detail. The technological and electrical parameters that are effective in Micro-EDM are stated explicitly. Geometry of the machined micro-holes and resolidified material around the hole entrance are observed. Several descriptive pictures, obtained by Scanning Electron Microscope (SEM) are included to understand the phenomena. EDM is an important process in the field of micro machining. However, a number of issues remain to be solved in order to successfully implement it an industrial environment. This study investigates the optimization of machining parameters for machining in micro EDM. Here, the overcut and the Metal Removal Rate (MRR) and Tool wear ratio are targeted. The study focuses on a specific combination of electrode and work piece material and proposes a typical method for micro EDM process optimization. The cutting of the Inconel 718 using Micro EDM with a brass electrode by using Taguchi methodology has been reported. The Taguchi method is used to formulate the experiment layout, to analyze the effect of each parameter on the machining characteristics and to predict the optimal choice for each EDM parameters like Discharge current, Pulse on time, Pulse off time. It found that these parameters have a significant influence on the machining characteristics such as Metal Removal Rate (MRR), Overcut and Tool wear ratio.