A thin electrode embedded in an electrostrictive material under electric loading is investigated. In order to obtain an asymptotic form of electric fields and elastic fields near the electrode edge, we consider a modified boundary layer problem of an electrode in an electrostrictive material under the small scale saturation condition. The exact electric solution for the electrode is obtained by using the complex function theory. It is found that the shape of the electric displacement saturation zone is sensitive to the transverse electric displacement. A perturbation solution of stress fields induced by incompatible electrostrictive strains for the small value of the transverse electric displacement is obtained. The influence of transverse electric displacement on a microcrack initiation from the electrode edge is also discussed.