This paper aims to investigate the influence of kerosene and deionized water as dielectrics on surface quality and machining accuracy of micro wire-EDM. With no chemical corrosion and electrolysis compared to water dielectric, better surface finish can be achieved by using kerosene as dielectric. Deionized water’s faster quenching contributes to micro-cracking of the machined surface. Spark gap width and maximum variations of slit width can be reduced by 20-40 μm and 4-5 μm, respectively using kerosene as dielectric liquid since the resistivity of kerosene is higher than that of deionzed water. Experimental results demonstrate that the machining accuracy can be improved by using kerosene as dielectric but the machining speed decreases dramatically.