The EDM can machined some superhard conducting material that cannot be handled by the traditional method, such as carbide alloy, tool steel and engineering materials etc., however, it is also accompanied with slow material removal rate(MRR) and poor surface quality (surface roughness). For some fine machining having rigorous criterion on size and surface roughness, the EDM cannot meet the demand. Some researches indicate that the MRR of small hole by electrical discharge machining combined with ultrasonic vibration (UEDM) can increase in certain range, but the surface quality is still poor. Although there are lots of the researches on the UEDM, some debates on machining mechanism and applied scope existed, and technology of UEDM needs the further study. After small hole machined by the UEDM, it is polished by ultrasonic vibrating. Two steps are includes in this technology. In the first place, on a high velocity electro discharge small hole machine with high-pressure dielectric liquid and hollow electrode, a transducer and horn are attached between the spindle and the electrode. The ultrasonic vibration of the tool electrode is implemented by connecting the horn and the tool electrode together with a chucking appliance. The second, after the small hole is complete, with the same machine tool and tool electrode the process of polishing the inwall of the small hole is carried out by accompanying the ultrasonic vibration, revolution and feed of the tool electrode with the abrasive material. In the experiments, the reference point for UEDM is found and the new theory is proposed to explain the increase of the MRR and the decrease of the surface roughness value .The polish with the ultrasonic vibration can improve further the surface roughness. The ultrasonic vibrating polish after the hole by UEDM is an economical and effective technology, which realizes machining of two procedures in one machine tool. So the process for changing machine tool and tool is not needed any more and the efficiency is further improved.