A sustainable approach was proposed to address environmental pollution, carbon footprint and economic efficiency challenges in Electrical Discharge Machining (EDM). This approach involved the use of Bio-dielectric such as biodiesel and Bio fuel (distilled water with 10% ethanol). The EDM process performance was further optimized by experimenting with both electrodes’ rotation (i.e., in same direction, opposite direction, no rotation) and the use of treated tools (no treatment, heat treatment, cryogenic treatment). Biodiesel as a bio-dielectric showed promise by delivering the highest Material Removal Rate (MRR) and the lowest Tool Wear Rate (TWR). Bio-fuel (distilled water with 10% ethanol) resulted in the lowest Surface Roughness (SR) and cleaner machined surface with least carbon deposition. Additionally, electrode rotation improved flushing and enhanced performance parameters, with opposite direction rotation yielding the highest MRR and the lowest SR. However, no rotation of electrodes resulted in the lowest TWR. The use of treated tools, specifically heat-treated and cryogenically treated tools, also improved performance and reduced energy consumption, with cryogenic treatment providing the highest MRR, heat treatment giving least SR, and no treatment providing least TWR. Certain interactions between factors significantly impacted performance parameters. Grey relational analysis revealed that using distilled water with 10% ethanol as a dielectric, employing cryogenically treated copper tools, and having no rotation of both electrodes yielded the best performance parameters.