Micro-electrochemical spark machining (µ-ECSM) is an advanced hybrid machining approach to machine materials, irrespective of their electrical conductivity. This article illustrates the state-of-the-art review of the current research on the wear mechanism of micro-tool electrodes used in the µ-ECSM process. The influence of different electrical and non-electrical machining parameters on tool wear rate, inducing dimensional inaccuracies in the fabricated components, has been addressed. The various parameters of the tool, such as the material, surface morphology and texture, shape, and size, which influence the process performance, have been discussed in detail. The requirement for technological development in the tooling area of the µ-ECSM process has been pointed out. A detailed analysis of the aforementioned areas is present in this article.