Micro electrical discharge machining (micro-EDM) has some shortcomings such as poor material removal rate (MRR) and high electrode wear ratio (EWR) etc, in order to overcome these demerits, a new piezoelectric self-adaptive micro-EDM, based on inverse piezoelectric effect, was developed in this paper. The structure and working principle of this new technology are different from traditional micro-EDM. Piezoelectric actuator used as the micro driven mechanism and it is simple. This new technology can realize self-elimination in the working process because of its special structure. Working principles and process of the new system were analyzed in this paper. The effect of parameters such as voltage, capacitance, and resistance on MRR, EWR and surface roughness was analyzed. Statistical analyses of the results show that voltage, capacitance significantly influence MRR, EWR and surface roughness. Resistance R1 and R2 has much influence on MRR and relative small effect on EWR and surface roughness.