Successful surface modification can be obtained by Electrical Discharge Machining (EDM). In this work the discharge characteristics in misted deionized water and near-dry powder-mixed medium was studied systematically, as well as the microstructure and properties of electrical discharge strengthened layers on TC4 alloy. It indicates that the breakdown voltage of EDM in misted deionized water medium has been reduced to about 1/3 than in air medium. In near-dry powder-mixed medium, it is reduced to about 1/9, because the discharge gap is much larger than that of other mediums. In other words, a stable discharge can be obtained by larger discharge gaps and lower pulse energy than traditional EDM surface strengthening method, which leads to more stable discharge process. Experimental researches show that dense and sound combination with matrix like, multiphase hybrid intensification and chrysanthemum petal-like microstructure of strengthened layers can be observed in the near-dry powder-mixed medium. Meanwhile, it is found that the microhardness of the strengthened layer is up to about 1200 HV, which is four times higher than the base material.