In layer-by-layer EDM milling based on inner jetted dielectric, the dielectric inlet pressure is an important process parameter and has great influence on the machining characteristics. So, numerical simulation of the liquid-solid two-phase flow field in discharge gap is conducted. The simulation results of debris concentration reveal that the debris can be evacuated from the discharge gap in time, which increases the machining process stabilization and improves the machining efficiency. Finally, the effect of dielectric inlet pressure on material removal rate (MRR) and tool wear ratio (TWR) were also researched and discussed. The optimum inlet pressure, which maximized the MRR and minimized the TWR, was found through experiment.