Due to the profound use of AISI 304 stainless steel in household appliances optimization of process parameters in Electro Discharge Machining of AISI 304 is mostly needed for quality improvement. In this experiment AISI 304 stainless steel has been taken for machining with EDM oil dielectric. Three controllable parameters like peak current (Ip), pulse on time (Ton) and Flushing pressure (Fp) at three levels were taken for optimization. Material Removal Rate (MRR) was taken as response parameter and was measured for various combinations of controllable parameters. Taguchi optimization technique with L9 orthogonal array was used to optimize the specified controllable parameters. It was found that peak current of 15Amp, pulse on time of 200ms and Flushing pressure of 9Kgf/cm2 bears the optimal quality characteristics. At these levels Material Removal Rate was found to be 16.250mm3/min.