Polycrystalline diamond (PCD) tools fulfil a vital role in the woodworking industry, with its ability to achieve smooth machining quality and long service life, along with excellent performance features. However, diamond tools' fabrication is a difficult material removal process. In this study, we propose and develop an electrical discharge machining (EDM) grinding method with disk electrode. Tool profiles are captured by a measuring probe, and path curves are tracked by a peripheral disk in edge fabrication. Experiments of graphite and copper serving as electrode are carried out, respectively, in the disk discharge grinding process. In addition, with design of experiments on PCD machining, different Disk EDM parameters are obtained to evaluate the influence of dominant factors on machining speed and surface quality. Optimal gap reference voltage, wheel rotational speed and pulse width are extracted, respectively, under the conditions of two electrode materials. Results show that pulse width plays the most important role in machining, and copper electrode can effectively produce smoother surface than graphite when used as electrode in Disk EDM. Moreover, edge fabrication of spiral miller (φ125 mm) is precisely realized with circular run-out errors less than 0.050 mm.