This present work is aimed to optimize the machining parameters and study the effect of powder mixed dielectric fluid on EDM process. TOPSIS method of optimization is adopted to identify the optimal machining parameters. HCHCr die steel is preferred as machining material. Ni, Zr and Ni+Zr were selected as powder inclusion in dielectric fluid due to hard and ductile nature. L9 array Taguchi DOE is preferred to perform the experiments with parameters like peak off time, pulse off time and pulse current. TOPSIS study revealed that, third level of powder dielectric fluid (Ni+Zr), 7A peak current, 9 ?s pulse on time and 2 ?s pulse off time were specified as optimal condition. Pulse on time (Ton) was having high impact on MRR and Ra while performing machining operation on HCHCr die steel. SEM analysis was done to find the effect of powder mixed dielectric fluid while EDAX analysis was done to ensure the presence of powder inclusion.