A novel method of using atomized dielectric spray in micro-electric discharge machining (EDM) (spray-EDM) to reduce the consumption of dielectric is developed in this study. The atomized dielectric droplets form a moving dielectric film up on impinging the work surface that penetrates the interelectrode gap and acts as a single phase dielectric medium between the electrodes and also effectively removes the debris particles from the discharge zone. Single-discharge micro-EDM experiments are performed using three different dielectric supply methods, viz., conventional wet-EDM (electrodes submerged in dielectric medium), dry-EDM, and spray-EDM in order to compare the processes based on material removal, tool electrode wear, and flushing of debris from the interelectrode gap across a range of discharge energies. It is observed that spray-EDM produces higher material removal compared to the other two methods for all combinations of discharge parameters used in the study. The tool electrode wear using atomized dielectric is significantly better than dry-EDM and comparable to that observed in wet-EDM. The percentage of debris particles deposited within a distance of 100 μm from the center of EDM crater is also significantly reduced using the spray-EDM technique.