This investigation addresses concerns in micro-electrical discharge machining (EDM) such as high tool electrode preparation cost, tool electrode wear, and tool electrode compensation by proposing a new electrostatic field-induced electrolyte jet tool electrode. This method utilizes the theory that in a strong direct current electric field, the electrolyte at the capillary tube outlet can form a Taylor cone based on the balance of electric field force and surface tension. Coupled with the increase of electric field intensity, a very fine jet can eject from the tip of the Taylor cone, and this induced charge on the tip leads to a discharge to the workpiece which can remove debris from the workpiece surface. After the discharge, the induced charge at the tip is neutralized, leading to the surface tension outweighing the electric field force and the withdrawal of the fine jet. As a result, the cyclic pulse discharge process is generated. During the process, the tip of the fine jet serves as the tool electrode. This paper identifies this cyclic pulse electrolyte jet tool electrode generation and discharge process in action and tests the machining ability of this tool electrode on a silicon wafer. This electrolyte jet tool is also shown to have no wear or compensation issues, and the cost compared to conventional EDM is shown to be small.