In this work, a modified tool design was adopted to drill holes in the dry EDM process. Experiments were conducted on AISI D2 steel using a copper electrode as the tool. Taguchi’s L27 orthogonal array was used to design the experiments. Discharge current ( I ), pulse on time ( T ON ), Voltage ( V ), pressure ( P ) and tool rotational speed ( N ) were chosen as the various input parameters. The grey relational analysis was used to determine the optimal level of parameters to achieve better results. The experimental data were also statistically analysed by using the ANOVA test. The current ( I ) was found to be the most influential parameter followed by the pressure ( P ). The surface morphology and microstructure of the machined surface were analysed, and it was found that better surface characteristics were exhibited on the surface machined using the optimal level of parameters.