Since its introduction, electrical discharge machining (EDM) has garnered the urgent attention of researchers. EDM utilizes a non-contact machining process that operates through spark erosion; it offers a wide range of applications in manufacturing of automotive parts, dies, and press tools due to its ability to produce intricate shapes with precise tolerances and to machine extremely hard materials. The minor restrictions of EDM have led to the evolution of other hybrid approaches in recent years. This review paper offers a detailed analysis of how process input parameters—such as Pulse on (Ton), Pulse off (Toff), Current, and Powder concentration (Pc)—affect output parameters like material removal rate (MRR), tool wear rate (TWR), and surface roughness (SR) in EDM. Furthermore, many modelling, optimization techniques such as Analysis of Variance (ANOVA), Taguchi method, and Response Surface Method (RSM) on EDM are included in the paper. Through this review, it is concluded that adding powder to the dielectric can increase the material removal rate (MRR) while simultaneously decreasing tool wear rate (TWR) and surface roughness (SR).