Slicing of single crystal silicon carbide (SiC) wafers by commonly used abrasive wire saw method is very time and cost consuming due to its extreme high hardness. This problem becomes more serious with the increase of SiC ingot diameter. Therefore, electrical discharge machining (EDM), which is a thermal process regardless of workpiece hardness, is developing as an alternative method for slicing SiC. In this study, EDM of SiC by a foil tool electrode was proposed for slicing SiC. Comparative experiments of foil EDM of SiC between in deionized water and in EDM oil were conducted. The tool electrode wear ratio, area cutting speed, kerf width, and surface integrity were experimentally investigated, and the reasons for the differences were discussed. It was clarified that foil EDM in deionized water can attain a higher cutting speed than that in EDM oil under the same machining conditions. However, the surface roughness and tool wear ratio were larger than in EDM oil. Short pulse duration was found to be more suitable for EDM of single crystal SiC in both dielectric liquids.