The significance of suspending molybdenum di-sulphide powder particles of two distinct mean size viz. Φ40 μm and Φ90 nm into the dielectric of electrical discharge machining is analysed. Crater geometry, surface crack density, skewness, kurtosis and chemical alteration of machined surfaces are considered as outcome measures. A numerical model using finite element analysis is developed to forecast crater geometry. To validate the proposed model, experiments are conducted by varying input parameters such as discharge duration, peak current, and gap voltage. In comparison with the experimental results, the proposed model predicts diameter of crater with an error of 3.34%, 7.32% and 2.76% for discharge duration, peak current and gap voltage respectively for Φ40 μm powder; similarly, 0.19%, 3.65% and 2.78% for Φ90 nm powder. Scanning electron microscope images, 2D roughness profiles and X-ray diffraction profiles are used to assess the partial discharge phenomena, surface crack density, skewness, kurtosis and chemical alteration of the machined surface. For all parameter settings, the Φ90 nm produced surfaces with lessened micro-cracks compared to Φ40 μm. The Φ90 nm creates surfaces with negative skewness and kurtosis less than 3. The deposition of MoS2 powder particle on the machined surface is revealed through X-ray diffraction analysis.