The AA7075 alloy and AA7075/SiC/Gr hybrid composite prepared by the stir-casting method have been further thermo-mechanically processed through unidirectional hot rolling and hot cross-rolling routes to eliminate casting defects like voids, blow holes etc. Three initial sample temperatures, that is, 350℃, 400℃, and 450℃, have been considered for the hot cross-rolling. The Al alloy and its hybrid composite prepared at different rolling temperatures are studied to investigate their micro-machining behavior through micro-electric discharge machining (µ-EDM). The micro-holes are made on the rolled samples along the rolling direction of the final rolling pass using a tool with twist drill bit geometry. Further, multi-objective optimization of the µ-EDM process parameters considering the response parameters viz. material removal rate (MRR) and tool wear rate (TWR) has been carried out using the gray relational analysis (GRA) technique. The µ-EDM parameters chosen to optimize in this study are voltage, pulse on time, and tool rotation. The obtained GRA results are further analyzed through normality and equal variance tests. The R-squared values of 95.02% and 95.53% for AA7075 alloy and hybrid composite, respectively, indicate that the data fit well with the statistical model. In material removal, the different electrical and thermal characteristics of the Al matrix and the reinforcements possibly generate sparks with a different characteristic that ultimately affects the MRR of the composite. Through scanning electron microscopy (SEM), the morphological study confirmed the presence of globules and voids on the machined surface. The formation of globules and voids is more significant in the AA7075 alloy than in the composite.