Ultrasonic micromachining (USMM) process has established its superiority over those other machining techniques as a unique strategy. Due to the superior properties of zirconia ceramic material, it is used in many industries, like aerospace, automotive, and process industries. This research paper presents an experimental analysis for through-hole generation on engineering ceramic, i.e., zirconia (ZrO2) with the best quality using the USMM process. Circular-type zirconia of 25 mm diameter and 1 mm thickness as workpiece, and silicon carbide (SiC) of 15 µm as abrasive materials have been used during machining. In this machining process, the feed rate of the tool (TF), power rating (PR), and concentration of slurry (SC) is considered as input parameters for determining the material removal rate (MRR), overcut (OC), and taper angle (TA), which are the output responses. Finite element analysis (FEA) has been done to determine the stress and strain-affected zones during the impact of an abrasive particle on the target surface. Each parameter’s effect has been examined in this experimental investigation. The most important factor has also been determined using analysis of variance (ANOVA). Moreover, the scanning electron microscopic view was considered for the generation of machined holes during the USMM process.