The performance of electrical discharge machining (EDM) primarily depends on the spark quality generated in the inter-electrode gap (IEG) between the tool and workpiece. A method for obtaining accurate information about the spark gap is required to effectively monitor the EDM process. The rise and fall of thermal energy in the discharge zone at a rapid rate during the dielectric breakdown produces high-pressure shock waves. This work explores the suitability of using acoustic emission (AE) generated from these shock waves and the elastic AE waves released on the workpiece due to the induced stress to monitor the performance and spark gap in EDM. The information content of the AE signals acquired at various machining conditions was extracted using AE RMS, spectral energy and peak amplitude. These features were able to well discriminate the machining condition, tool material, workpiece material, flushing pressure, current density, the initial surface roughness of the tool. Additionally, the AE signal features had a good and consistent correlation with the performance parameters, including material removal rate, surface roughness (Ra and Rq) and tool wear. The findings lay the groundwork to develop an effective, non-intrusive in-situ AE-monitoring system for performance and IEG condition in EDM. © 2020, © 2020 Taylor & Francis Group, LLC.