Micro-electrical discharge machining is an indispensable tool to manufacture the component or parts of components at the micro-level with reasonable accuracy and precision. This article reports a comprehensive overview of micro-EDM along with their recent trends and key challenges. The sparking phenomenon, physical principle of material removal, process capabilities and flexibility with the other machining process are discussed in the initial part of the paper. Major development issues associated with nano-EDM are reviewed, and suggested solutions are proposed. Research and technology gaps enabling the transition from micro-EDM to nano-EDM are examined. The impact of discharge power technology and dielectric circulation is explored. Moreover, this review article explores the sustainability of the system (micro-EDM) through green manufacturing. A state-of-the-art has been studied in various aspects of micro-EDM. The promising future research scope is also noted in micro-EDM as well as in nano-EDM based on the electrical discharge.