A micro-electro-discharge machine (Micro EDM) was developed incorporating a piezoactuated direct drive tool feed mechanism for micromachining of Silicon using a copper tool. Tool and workpiece materials are removed during Micro EDM process which demand for a tool wear compensation technique to reach the specified depth of machining on the workpiece. An in-situ axial tool wear and machining depth measurement system is developed to investigate axial wear ratio variations with machining depth. Stepwise micromachining experiments on silicon wafer were performed to investigate the variations in the silicon removal and tool wear depths with increase in tool feed. Based on these experimental data, a tool wear compensation method is proposed to reach the desired depth of micromachining on silicon using copper tool. Micromachining experiments are performed with the proposed tool wear compensation method and a maximum workpiece machining depth variation of 6% was observed. © 2010 Copyright SPIE - The International Society for Optical Engineering.