The performance of electrodes is an important aspect in electrical discharge machining (EDM). For any particular set of working conditions, the tool electrode performance is mainly determined by the electrical, thermal, physical and mechanical properties of the electrode material. Although an ideal material that can function as a perfect electrode does not exist, powder metallurgy provides a means of combining the desirable characteristics of different materials. In this process, powder characteristics, interaction between powder and compacting die as well as sintering conditions are decisive factors. Dependence of the physical, electrical and thermo-mechanical properties of the compacts on the conditions used during powder metallurgy processing of the electrodes for EDM has been investigated.