<p>In contemporary industries such as aerospace, the production of precise products like micropumps, micro engines, and microrobots, and biomedical instrumentation to work on materials like tough metals, alloys, titanium, composites, and ceramics. Electro-Discharge Machining (EDM) is a commonly employed unconventional machining technique. EDM’s dependence on traditional dielectric fluids such as EDM 3 oil, hydrocarbon dielectric liquids, mineral oil, and kerosene, as well as its higher energy consumption and slower material removal rate, results in a lower sustainability rating. Steam, dangerous toxic gases, and tiny particles such as smoke, ash, and mineral dust are also released during the machining process. Another significant issue is the creation and discarding of toxic dielectric waste that is difficult to decompose. Both workers and the environment are adversely affected by these hazardous gases. Because of the possible health and fire hazards, operator safety is also a top priority. In addition to examining alternative dielectric materials that might be good alternatives to conventional EDM oils, the article explores the problem of hazardous fumes produced during the machining process. This review paper examines the environmental impact of EDM, the machining effectiveness of various eco-friendly EDM techniques, and the safety and well-being of employees during operations. Numerous illnesses caused by dangerous gases or poisonous vapours are also examined. Powder-mixed EDM, dry and near-dry EDM, vegetable oil-based and water-based dielectrics are all covered in detail in this article. The article ends by considering research gaps, future opportunities, and concluding thoughts.</p>