KDP crystals constitute the only laser-frequency conversion and electro-optical switches that can be used in laser systems for inertial confinement fusion. However, KDP crystals are difficult to produce because of their inherent softness, brittleness, water-solubility, and temperature sensitivity. The authors’ group developed a water-dissolution polishing method in previous studies to obtain near-damage-free KDP surfaces. In this article, the effect of the wetting characteristics of the water dissolution polishing fluid on the crystal surface—a factor rarely considered in the usual process optimization—on the polished surface quality was comprehensively studied. The mean radius of micro water droplets at 5 wt.% and 7.5 wt.% water content was approximately 0.6 nm and 1.2 nm, respectively. Theoretically, the smaller micro water droplet size is beneficial to the polished surface quality. When the water content was 5 wt.%, due to the poor wetting characteristics of the polishing fluid, surface scratches appeared on the polished surface; when the water content was 7.5 wt.%, the effects of the wetting characteristics and the radius of the micro water droplets reached a balance, and the polished surface quality was the best (Ra 1.260 nm). These results confirm that the wetting characteristics of the polishing fluid constitute one of the key factors that must be considered. This study proves that the wetting characteristics of the polishing fluid should be improved during the optimization process of polishing fluid composition when using oil-based polishing fluids for ultra-precision polishing.