Abstract Giant electro-rheological polishing (GPRP) is recognized as an innovative ultra-precision machining technology with significant potential. However, the pronounced edge effect within the GPRP's polishing gap can introduce errors in calculating the effective area and designing the electrode structure. This, in turn, may lead to under-polishing and an increased risk of insulation breakdown. In this study, COMSOL was employed to investigate the electric field distribution characteristics within the polishing gap. This exploration aimed to refine the calculation model of the effective area, optimize the plate electrodes' structure and size, and diminish the likelihood of insulation breakdown. Through systematic finite element simulations, the impact of polishing voltage, inter-electrode gap, and plate length on the edge effect was thoroughly analyzed to ascertain its influence range. The simulation findings revealed that, while maintaining a constant inter-electrode gap for the tool electrode, variations in the polishing gap, polishing voltage, and plate length within specific ranges resulted in an edge effect influence range of approximately 1 mm. Moreover, when the machining gap, polishing voltage, and plate length remained unchanged, the edge effect influence range increased proportionally with the electrode gap within a specific range, approximately equivalent to the size of the electrode gap. Experimental validation of the giant electro-rheological effect confirmed the existence and influence range of the edge effect, aligning with the finite element simulation results. Ultimately, modifications to the calculation model of the effective area were proposed, along with a solution to optimize the electrode size and structure, with the objective of reducing the probability of insulation breakdown. In practical applications, this work can provide a valuable reference for electrode structure design, insulation breakdown improvement and parameter selection.