Ti(C,N)-based cermets were recently designed for tool applications as they offer enhanced interfacial strength. These cermets exhibit a typical core/rim microstructure, as found in conventional cermets. To determine the possibility of using these new cermets as electrodes for electrical discharge machining (EDM), Ti(C,N) with carbides, nitride, solid-solution carbonitride such as (Ti,W)(C,N), and Ni were milled together, and sintered to manufacture an electrode to drill a micro-hole in a stainless steel thin plate (SS304) using micro-EDM. A commercial WC (tungsten carbide) electrode was selected to compare its machining capability with that of the homemade cermet electrode. To ensure a fair comparison of cutting performance, the optimal machining conditions for commercial WC, cermet, and the homemade cermet electrode were obtained using the Taguchi method and Grey relational analysis. Experiments under Taguchi and Grey relational optimal conditions showed excellent machining performance using the new homemade cermet electrode.