Micro-EDM is widely used in machining of miro-parts such as micro-shafts and micro-holes. In order to select proper machining conditions and to reduce the machining time, it is necessary to understand machining characteristics under various machining conditions. Micro-hole machining tests were performed with round shape electrodes with different capacitances and voltages of the power source. The effects of the electrode rotational speed and diameter on the machining rate were also observed. From the experimental results, it was found that capacitance and voltage have significant effects on machining rate and the machined surface integrity. With higher capacitance and higher voltage, higher machining rate was observed together with poorer surface integrity. The electrode diameter was also found to have an effect on the machining rate and electrode wear.